The Indian government seems very hostile to cryptocurrencies and maybe looking for faster ways to ban them. There are reports of government officials trying to use what is termed an “ordinance route.”
Shortcut Process is Underway
According to a video released by Indian news outlet CNBC-TV 18, the ordinance route is already been taken by the Indian government. This route would make the law banning cryptocurrencies in India go through faster. If these officials succeed, a cryptocurrency ban could take place as soon as next month.
Indian government plans to stop its citizens from using cryptocurrencies like Bitcoin and Ethereum. However, it is planning to release its digital rupee to replace conventional cryptocurrencies. The law would also address regulations on the digital rupee, apart from banning the use of other cryptos. The Reserve Bank of India
For the ordinance to be successful, the Indian president has to sign the bill into law, without the Parliament. Currently, the Indian parliament is not in session and cannot sign any law. But if President Ram Kovind signs this law, the ban could take place as soon as March.
The CNBC-18 reports that some entities have already started making drafts towards the ordinance, and wants it done “as soon as possible.” Once the ordinance is passed, this could affect crypto stakeholders in India almost immediately. The Cryptocurrency and Regulation of Official Digital Currency Bill is a blanket ban on all cryptocurrency use in India. The only exception to this ban is the technology behind the cryptocurrencies.
The Previous Law was Thrown out by Supreme Court
Speculations on this law started circulating in August last year. According to MoneyControl, Indian government officials started working on the law last year. it seeks to put an end to cryptocurrency trading, and institute fines and imprisonment for anyone caught trading in them.
Recall that the Reserve bank of India issued a ban on cryptocurrencies in March 2020. The Supreme Court however overturned the ban in April, saying it was disproportionate. The Court said it failed to see how digital currencies could harm banks. This could be the reason why the Indian government is now working on another crypto ban law and wants it to be in place very quickly.