Although there has been a lot of positive news about cryptocurrencies lately, such as the influx of institutional investors and acceptance by large organisations such as Paypal and Visa, there is no shortage of negative news. One of the most sceptical governments is the government of India, which intends to pass a bill to ban cryptocurrencies in the country during parliament’s budget session. The Government of India has historically been trying to limit the use of cryptocurrencies in the country with many companies appealing to the Supreme Courts with the country’s central bank considering the need for digital currency issuance and how to implement it.


The importance of the intention to ban cryptos

The proposal to ban cryptocurrencies in the country is not the first attack by the Indian government on decentralised cryptocurrencies as India’s monetary policy regulator banned cryptocurrency trading in 2018 following a series of illegal actions related to these months after the Narendra Modi to ban 80% of the nation’s currency. Cryptocurrency exchanges filed a lawsuit in the Supreme Court in September and won a break in March 2020. The proposed new law will provide a framework for the creation of an official digital currency to be issued by the Reserve Bank of India and allow for some exceptions as promoting blockchain, underlying cryptocurrency technology and its uses, according to a lower house bulletin.


Although the decisions of the Indian government are not final and the new law has not taken its final form, we observe that unless there is a comprehensive global regulatory framework for cryptocurrencies, there can be market turmoil at any time as there are many governments that are still sceptical and wary of decentralised economy models.