The Indian government will not be considering a cryptocurrency-related draft bill during the winter session of Parliament as was previously planned. The draft bill entitled “Banning of Cryptocurrency & Regulation of Official Digital Currencies” is not included in the session agenda issued in India’s lower house of parliament, Lok Sabha, on Nov. 14.
In August 2019, the Indian government stated that the draft bill would be introduced in Parliament in the winter session, which takes place between Nov. 18 and Dec. 13.
The proposed bill suggests a complete ban on crypto
As reported by Cointelegraph, the draft legislation purportedly intends to not only impose a complete ban on the use of crypto in India but also to introduce a“Digital Rupee” issued by the country’s central bank, the Reserve Bank of India.
However, the proposed bill does not apply to Bitcoin’s (BTC) underlying technology of blockchain as well as other related technologies associated with the development of the technology, including blockchain-based financial applications.
Crypto community in India welcomes delay of the crypto ban
Sohail Merchant, CEO of Indian crypto exchange Pocketbits, considered the news a temporary relief, stressing that the community now has more time to circle the wagons and protect the industry. He tweeted:
“Draft Bill for Banning of Crypto is not on the Agenda for Parliament Winter Session. Relief for now, but use this time to come together and present our case to the regulators. Forget competition/ego & echo our thoughts with a single voice.”
Nischal Shetty, CEO of Wazirx crypto exchange, said that the delay is great news for the crypto ecosystem in India, suggesting that the government is taking more time to reevaluate the complete ban of crypto:
“Great to see Indian Government not rushing into this. They're listening.”
India’s potential ban on crypto has been widely criticized by investors in the industry. In late October, billionaire venture capitalist Tim Draper called on prime minister Narendra Modi to reconsider the country’s hostile stance on crypto. The famous Bitcoin bull argued that India was leaving itself vulnerable to corruption by trying to ban crypto.
Earlier today, Cointelegraph reported that India is one of the five BRICS countries considering the launch of a new cryptocurrency to facilitate settlements between member countries.