The government of India has developed the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019" which is designed to completely ban operations with Bitcoin and other cryptocurrencies within the country. This is reported by the Economic Times, citing sources within the government.
The bill has been developed since 2018. Representatives of various departments, including the Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC) and the Investor Education and Protection Fund Authority (IEPFA) participated in its preparation .
The publication quotes unnamed officials, according to which these departments have supported a direct ban on the purchase, sale and release of cryptocurrencies. After receiving the necessary comments, the draft law in its final reading will be proposed to the next government of India, which will begin work after the elections in May.
In addition, a cryptocurrency ban can be passed in accordance with the Money Laundering Prevention Act (PMLA). In particular, officials had previously noted that the purchase and release of cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, etc., are made by private individuals and companies because of false motivations for receiving huge profits.
Such “schemes”, in their words, are not only opaque and do not fall under any regulated legal framework, but also often turn out to be financial pyramids, in which gullible investors are involved in order to deceive.
Note that earlier it was reported that the government of India is ready to legitimize the use of Bitcoin and other cryptocurrencies, but only under the strict restrictions of the industry.