The Indian Government Wants to End Cryptocurrency Scams with the Proposed Ban

Kumar Gaurav, founder and CEO of crypto exchange Cashaa, thinks that the latest efforts by the Indian Government to regulate digital currencies are not to outright ban cryptocurrencies. It is an attempt to prevent illicit activities in the sector.

According to a bulletin released on Friday by India’s Parliament, the governing body will study a bill to ban all private cryptocurrencies. Meanwhile, it will create a regulatory framework for a digital rupee issued by the RBI – Reserve Bank of India. Last week, the central bank announced that it would explore the possibility of a digital currency. Still, the bill also says it will allow certain exceptions. In order to help promote the underlying technology of the cryptocurrency and its uses. It would consider ways to put the digital currency to use if it found a need. 

The bank acknowledged the popularity surrounding cryptocurrencies globally. Still, it claimed that Indian regulators and local government bodies are sceptical and apprehensive about them. It referred to the central bank’s digital currencies as legal tender in the country. It also called them a liability of the central bank in digital form. 

India’s Government has had a complicated relationship with cryptocurrencies

Gaurav stated that there was no way any government could ban cryptocurrencies. It is a global and decentralized system. However, he was unsure what the Indian Parliament referred to by the term “private cryptocurrencies.”

They can undoubtedly ban the legitimate use of cryptocurrencies. It will only make it difficult for an ordinary person who doesn’t understand it to get involved in them, Gaurav said. However, we understand that the Indian Government is trying to crack down on scams that are run in the name of Bitcoin.

The Government of India has had a problematic relationship with cryptocurrencies. The country’s high court effectively struck down a blanket cryptocurrency ban that the Reserve Bank of India had imposed on cryptocurrency businesses. This has been in place for nearly two years. India’s Parliament has not taken a firm position on digital currency regulation since then. However, reports from August suggest that the governing body was working to ban cryptocurrencies.

The proposed legislation, the Bill on Cryptocurrencies and Regulation of Official Digital Currency, is being studied in the Rajya Sabha – the upper house of the Indian Parliament – as part of its budget session. The Bharatiya Janata Party of the National Democratic Alliance currently controls both houses of the country’s bicameral legislature.