India Plans To Introduce Law To Ban Bitcoin, Other Cryptocurrencies

The proposed law is likely to provide a basis for developing an official digital currency issued by the Reserve Bank of India (RBI).

(Representative Image/Getty)

New Delhi: The government is planning to introduce a bill to ban all private cryptocurrencies in the country during the budget session of parliament that began on Friday, sources in the know of the development told ABP News Network.

However, it could not be independently confirmed if it is the same bill that the government proposed to introduce in 2018 or altogether a new Bill.

The proposed law is likely to provide a basis for developing an official digital currency issued by the Reserve Bank of India (RBI). The bill would also allow some exceptions for blockchain promotion, the underlying crypto-currency technology, and its uses.

The central bank is looking into the need for and introducing a digital version of the fiat currency.

India's monetary policy regulator banned crypto transactions in 2018. However, cryptocurrency exchanges filed a lawsuit against the order in September with Supreme Court and received respite in March 2020. But the new bill is likely to make things difficult for the cryptocurrency exchange owners.

Confirming the development, Sathvik Vishwanath, founder, and CEO, Unocoin, told ABP News, "From what we understand, the government is planning to bring it (Bill) on the table. But what will happen after that is not clear. If it gets delayed, take more time, or a new committee will be formed. We are representing our concerns to the government. The government had planned a similar bill in 2018, and it is not known if it is the same bill or a new bill." We have to wait and watch for more clarity."