The Indian government has verified in a Right to Information (RTI) response the inter-ministerial committee’s cryptocurrency invoice is “awaiting approval of the government.” The bill is now being examined by different ministries.
Indian Government’s Evidence
The government of India was sitting on a cryptocurrency draft bill because it was filed into the finance ministry early annually. Entitled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019,” the record had been drafted by an inter-ministerial committee led by former Finance and Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg.
While no formal statement concerning the improvement of the invoice was made, a few media reports indicate that consultation has started on this invoice. To launch the veracity of the news, attorney Mohammed Danish, co-founder of Crypto Kanoon, registered an RTI application together with the Department of Economic Affairs.
In its brief response dated July 13, the Department of economic affairs wrote: “The government has set up inter-ministerial committee (IMC) for examining the issues of cryptocurrencies under the chairmanship of Secretary (EA).” The correspondence proceeds:
The record on the IMC on VCs [virtual currencies] has been filed with its members, but is awaiting approval of their authorities. The bill and report now be analyzed by the authorities through inter-ministerial appointment by transferring a cupboard note in due course.
author explained to Coinpedia book on Wednesday which “The present bill contemplates a blanket ban on everything related to cryptocurrencies.” He added that the IMC proposal “prescribes punishments for every activity from mining, holding, advertising, promoting, buying, selling to providing exchange services … If this bill is converted into law in the present form, then no sector can survive.”
However, he emphasized that the DEA employed the phrase “government” in its own RTI answer to refer to this Ministry of Finance, rather than “Parliament” or “Cabinet Secretariat.” This “means that this crypto bill does not conform to the satisfaction of the finance ministry,” that the Crypto Kanoon co-founder opined.
Additionally, he highlighted that it’s “unclear and quite pre-mature” to forecast exactly what the Ministry of Finance will do, such as whether significant modifications will be made to the invoice to reject the notion of a comprehensive ban on cryptocurrencies like bitcoin. However, “it seems that the Ministry of Finance does not want to proceed with this crypto bill for parliamentary clearance in the present form,” Danish considers, elaborating:
When the govt. decides to pass a law prohibiting crypto, this legislation could be contested by crypto organization, dealers, or enthusiasts predicated on several different rights offered to them under the Constitution.
Especially, Danish pointed out that “They can challenge this law before the supreme court under Article 32 and before high courts under Article 226 of the Constitution.”
Do you believe that the Indian authorities will ban crypto? Tell us in the comments section below.
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