Crypto ban in India after being lifted by the country’s apex court appears to be underway again according to local sources.
Reportedly, the Indian government are working towards putting a new law in place that would ensure crypto ban in India.
An anonymous government official who made this reveal claimed that two ministries alongside the Reserve Bank of India (RBI) are all working together to put a formal structure in place that would ensure the ban.
Local reports in India on Tuesday also confirmed this claim explaining that Indian authorities are preparing to pass a law that would ensure crypto ban alongside trading the digital asset.
The official explained further that the government is looking at outlawing crypto through legislative processes instead of a mere blanket ban from the RBI.
The official said, once the Parliament resumes for the session, we are hoping to get the law ratified. Indian Parliament is expected to reconvene in late August or early September.
Crypto ban in India: Long legal battle
Earlier this year, India’s apex court overruled a ban placed on crypto and banks working alongside crypto firms. The ban was put in place by the Reserve Bank of India since 2018.
However, after the ban was lifted, many exchange firms and crypto firms sprung up in India as government officials were of the opinion that a new law be put in place to stop ban cryptos instead of just RBI’s ban.
Crypto, a respite for Indians during lockdown
Although parts of India still experience restricted movement owing to the COVID pandemic, crypto firms, however, reported strong growth since lockdown.
Reportedly in May, CoinDCX saw a ten times surge in the number of users alongside a 47 percent growth in Q1 2020. WazirX also another crypto firm, reported a month-on-month growth of more than 80 percent in March and April.
Popular American crypto exchange firm Coinbase broke into the country, offering crypto services since April after the crypto ban in India was removed.