The Proposed Crypto Bill is under review

A committee was set up by the Ministry of Finance in July 2019 to review and gather all data regarding virtual currencies or cryptocurrencies. The committee submitted a draft bill which recommended to ban all private cryptocurrencies in India. However, these were only speculation because the proposed draft bill hasn’t been in public. All the information were collected from different sources.

Before the committee was set up by the Ministry of Finance, the central bank of India (RBI) put ban on the transactions between banks and crypto exchanges in April 2018. Deposit and withdrawal services from crypto exchanges to bank accounts were completely stopped. In that scenario, trading on crypto exchanges had become impossible. Several crypto start ups shut down their operations and some of them decided to set up their business outside the country. Zebpay was one of them. However, some exchanges decided to fight the situation and so they started P2P services as an alternative way to run their operations in the country. Wazirx was one of them who successfully added this feature to their exchange. I made all P2P transactions through wazirx exchange until the ban was lifted by the Supreme Court in 2020.

However, RBI was not happy with the verdict. But crypto users were happy with the decisions. After the verdict, deposit and withdrawal services from crypto exchanges to bank accounts restarted again. But it was not the end. Cryptocurrencies are still not a legal tender in India. So the legal issues still exist in the industries. Crypto exchanges and users are not against of crypto regulation, but they don’t want a total ban on the use of virtual currencies in the country. Do you know how many crypto users are there in India? There is no perfect data regarding the number of crypto users. According to Industry estimation, the number of crypto investors in India may exceed 100 millions ( 10 crores).

The government of India was about to introduce the proposed law known as the Cryptocurrency and Regulation of Official Digital Currency Bill in budget 2021. However, there was no discussion on the bill during the budget session. I read this article https://coinnounce.com/indian-lawmakers-review-the-proposed-bill-banning-cryptocurrencies/ today and came to know that the proposed law is still under review. If this is the same old draft bill made in 2019, then it will forbid all types of crypto transactions that include mining, holding, buying, selling, and issuing virtual currencies in India.

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