Centre preparing new laws to ban cryptocurrency trading in India

Trading in cryptocurrency has once again come into the scrutiny of the government, as reports suggest that the centre plans to introduce new laws for banning the platform.

According to Bloomberg, India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market.

People familiar with the development told Bloomberg that the bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament.

Reportedly, it is known that the federal government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading.

Cryptocurrencies have been in talks more frequently since 2017 when Bitcoin made an unnatural spike in its valuation paving way for a unique form of trading and birth of many other digital coins.

Currently, as per the Coinmarketcap.com, there are whopping 7,078 cryptocurrencies with a market valuation of $347.60B with Bitcoin holding the major share.

India has banned crypto transactions back in 2018 due to string of frauds. Reportedly, cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020.

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