With reference to, we quote: “anonymous government sources familiar with the details,” a local edition of the Economic Times reports that the Indian authorities have resumed work on a total ban on cryptocurrency in the country.
According to their information, several departments, including the Ministry of Economy, the Central Administration for Direct Taxes, the Central Administration for Indirect Taxes and Customs, and the Office of Education and Investor Protection, supported the idea of banning the production and exchange of cryptocurrencies in India.
The bill under the heading "On the prohibition of cryptocurrency and the regulation of official digital currencies", allegedly, was transferred to some government structures. What exactly is meant by “official digital currencies” is not known, but previously the country's central bank was investigating the possibility of issuing rupees in digital form.
It is expected that the final version of the document will be presented to the next government in May after the elections.
According to sources, the Ministry of Corporate Affairs informed the Ministry of Finance that the majority of cryptocurrencies are financial pyramids aimed at deceiving investors. Thus, in the absence of a specialized regulatory framework, it was recommended to apply anti-money laundering laws to cases involving cryptocurrencies.
The decision to ban cryptocurrency Indian authorities are bearing a long time. Back in April 2017, they formed an interdepartmental committee responsible for studying the problem, which, based on the results of its activities, recommended banning “private cryptocurrencies”. Later, the committee proposed abandoning a total ban in favor of strict regulation.
Over the past year, several Indian exchanges and crypto companies have been forced to close or move to foreign jurisdictions under pressure from measures taken against them by the country's central bank.