The rumors about the Indian government planning to put a blanket ban on cryptocurrencies finally turned out to be true. The official report along with the draft bill from the interministerial committee tasked at formulating the framework for crypto use was released on July 22, a day before the Supreme Court was scheduled to hear the crypto case.
The draft bill titled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019” proposes a complete ban on any kind of cryptocurrency even though the committee recommends the push for adopting blockchain and DLT. The draft bill was not well received by the Indian crypto community as most stakeholders have been constantly trying to convey the importance of crypto.
The chairman on the day of the official release of the report tweeted,
Committee is very receptive and supportive of distributed ledger technologies and recommends its widespread use in delivering financial services. It also opens up door for a possible official digital rupee. Private crypto currencies are of no real value. Rightly banned.
— Subhash Chandra Garg (@SecretaryDEA) July 22, 2019
Interestingly the recommendations in the bill dated back to February 28, and a lot has happened in the crypto space since then, especially the G20 summit where the FATF provided a regulatory guideline to help nations with their regulatory framework (which India was a part of).
Many crypto service providers and the majority of the Indian crypto community had voiced their concerns over a blanket ban and its downside. India would miss another big innovative transition as it did back in the late 90s during the Internet boom. However, at that time, India was not the global economic powerhouse it is today, given that it is one of the fastest-growing economies with the highest percentage of population under the age of 25.