Media outlet MoneyControl reports that Indian officials are seriously considering the use of cryptocurrencies in the country. Sources told the outlet that by banning cryptocurrencies by the law, as opposed to imposing a service ban like the central bank did, would be more effective. The source said,
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.
It also reports that the law ministry, ministry of information and technology, and the Reserve Bank of India (RBI) are being consulted on the matter. However, India is taking a more favourable stance on a Central Bank Digital Currency.
Should the law pass, those who use cryptocurrencies could face up to 10 years in prison and a $3.4 million fine. India has a strong investor market that has seen an uptick in activity during the pandemic, which began when the Supreme Court struck down the blanket ban imposed by the RBI.
The officials will discuss the legislation in the parliament session.