The Government of India is taking into account a ban to impose on the cryptocurrencies, called by them as the ‘private cryptocurrencies’.
As per the GOI Press Information Bureau, the finance minister Arun Jaitley, during the 19th meeting of the Financial Stability and Development Council (FSDC) considered the issues and the challenges regarding crypto assets and cryptocurrency among other things.
Discussion On The Crypto Ban
During the discussion, the council was instructed on the deliberations by the higher authorities led by the secretary of economic affairs in order to come up with a valid legal framework to ban the use of private crypto in India.
As of now, the position of the ban is still not clear but if it gets implemented then as predicted it will likely kick out the use of cryptocurrencies in the country by the people of India for the purpose of trade and exchange.
The country’s central banking authority, Reserve Bank of India (RBI), in August, showed a sign that it was looking for an introduction of a CBDC pegged by the rupee to cut down the annual bill of around $90 million in order to invent the physical cash.
Earlier this year, the National Institution for Transforming India, which is known as NITI Aayog, stated that in order to explore blockchain in key sectors like health, education and agriculture; it was looking for the way to make a proof-of-concept.
There was no such positive image regarding the cryptocurrencies in the committee meeting, but there was a discussion on a plan to encourage the use of distributive ledger technology.
The meeting came at the time when the crypto market in the country is at the crisis that includes an order by the Reserve Bank of India, regarding the prevention of domestic banks from providing any services to the virtual currencies firm like exchanges.
Response From Crypto Exchanges
The exchanges are looking for ways to sustain their business from failing. Their struggle can be seen in the launch of crypto-to-crypto trading.
Last month, Zebpay, the largest crypto exchange in terms of trading volume has closed its services. Also, the crypto ATM established by Unocoin in a mall at Bangalore was seized by police and the co-founder was also arrested. AltCoinEra has covered all the news regarding the ban by the government of India on the cryptocurrency.
In order to safeguard them from the ban, the exchanges have filed petitions and currently, they are being heard at the Supreme Court of India. On October 26, the court told GOI to provide their opinion on crypto within next 14 days.