The Indian government is likely to ban the cryptocurrency trade again and thus prevent the crypto boom that prevails in the country.
We have only recently informed you that India is seeing a rapid increase in interest in cryptocurrencies in response to the lifting of the ban approved by the Supreme Court in March this year.
We wrote about how Largest Cryptocurrency exchange in India has a daily volume increase of more than 470%, Indian cryptocurrency exchange CoinDCX receives $ 2.5 million investment from Polychain Capital and Successful Indian IT company is launching a new service focused on Cryptocurrency trading.
All indications were that India could be among the top countries in the field of cryptocurrencies, but it seems that everything will collapse now.
According to India’s largest online financial platform:
The government is planning to bring in a law to ban trade in cryptocurrency, a move that will come as a huge blow to an industry that has been booming during the lockdown.
The cryptocurrency trading was banned in the country since 2018, and none of the entities was able to provide services related to digital assets. Everything change from March of this year, when the Supreme Court changed its mind and gave the green light.
India has a regular weekly turnover in cryptocurrency trading worth $ 1 million
One of the main reasons why, after less than half a year, the Indian government wants to ban the cryptocurrency trade again is the fact that the country is losing rare revenues by failing to come up with a regulatory mechanism.
One of the government officials stated:
There was a view in the government that banning it through a law would be more binding. It will clearly define the illegality of the trade. We have forwarded a note to related ministries for inter-ministerial discussions,
We are working on it. After inter-ministerial consultations, it (the note) would be presented to the cabinet for approval. Once Parliament resumes for the session, we are hoping to get it ratified,
Tax department in the country required each crypto exchange to explain how they define the cryptocurrency trade, whether it is a supply of goods or services and whether they pay tax. The department also sent notifications to 500,000 investors.
Read also: Vladimir Putin has signed a law banning the use of cryptocurrencies to purchase goods or services
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