Very soon India will ban cryptocurrencies to put an end to incidents of money laundering and illegal fundings. The draft of a bill “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019” has been put forward to various departments of the Indian government. Apparently, the new government post mid-2019 elections will receive the proposal of the final bill.
The proposal of a ban on digital currencies comes from the Department of Economic Affairs (DEA), Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC). As per these organizations, the ban on cryptocurrencies must execute urgently. This ban will prohibit any kind of dealing with crypto money. It will include selling, buying and issuing of the digital money. As per Ministry of corporate affairs, people involved in the trade of crypto are running fake schemes with the promise of big returns on investment. As per Indian rules, these fall under Ponzi schemes and have no legal bases. The number of fraud cases due to crypto investment is growing significantly.
Until the bill to ban cryptocurrencies executes, fraud investors and firms will be dealt with the Prevention of Money laundering Act. Probably India will ban cryptocurrencies, but on the other hand, there are Indian firms that are working efficiently on the blockchain. Recently, Indian E-commerce giant Infibeam announced a blockchain based record keeping system. If the ban imposes, it will be for cryptocurrencies. Other technologies based on blockchain will definitely have a good future in India.