Just two months ago India’s central bank issued a directive banning Indian banks from trading in cryptocurrencies. What moves is the finance ministry is now taking?
Plans to completely ban trading with cryptocurrencies are being worked out by the Indian government, causing jitters among investors operating in this market.
As Business Insider reports, while the Indian government is working on a new law banning cryptocurrencies, investors believe that rational legislation is what this market needs and not a blanket ban.
It is recalled here that only two months ago the central bank of India issued a directive banning Indian banks from trading in cryptocurrencies.
Now, in a more generalized move, the country’s finance ministry is preparing to pass a law that would set out the legal framework for a total ban on cryptocurrencies across India. This bill is expected to be consulted immediately.
How the market reacts
“The ban is not a solution, but I do not think that at this stage India will adopt a soft solution,” comments Nischal Shetty, head of WazirX. “India must follow in the footsteps of the countries of the developed world and accept cryptocurrencies,” he adds.
“We should be open to discussing the benefits of cryptocurrencies,” says Ray Youssef, CEO and co-founder of Paxful.