Indian government representatives have shared the information that two ministers and Reserve bank of India take active steps related to the development of the juridical base aimed at banning crypto usage at the subcontinent.
Based on Indian media information the Indian officials do preparatory work to lobby the legislature, which prohibits cryptocurrency trading. This information is confirmed from an anonymous source stating about the fact of consultations between the Ministry of Electronics and Information Technology, the Ministry of Law and Justice, and the Reserve Bank of India. The consultations concerned the development of the juridical framework for such enactment.
The officials plan to adopt it either at the end of August or at the beginning of September
Indian crypto legislation
In March, the Supreme Court of India has completely prohibited the activities of the banking institutions dealing with crypto companies following RBI bans of July 2018. Such governmental action has caused the rise of crypto exchange activity around the country.
Though government officials considered RBI bans insufficient and this has become the reason for such law elaboration.
Indian crypto experts say that the chances of such complete ban had been more evident in 2019, instead of this year as lockdown issues have made drastic changes in the attitude towards crypto in the country
Crypto activity during the lockdown
Despite country restriction related to COVID 19 crypto exchanges show strong activity growth, as more and more investors shift to digital assets.
According to media reports in May this year the Indian CoinDCX has encountered significant growth of registered users and 47% profit growth in the first quarter of 2020. Trading platform WazirX also reported about significant step by step growth for 80% in the second quarter of 2020.