Indian Minister Says Modi Government Does Not Plan to Ban Cryptocurrencies

A recent announcement in India’s lower house of parliament has reignited fears of a blanket ban on cryptocurrencies. Speaking in the nation’s upper house, the Rajya Sabha, on Tuesday, a minister made it clear that the aim is to curb illegal cryptocurrency trading and ban its use for payments.

The Indian government has hinted at how it might move to regulate cryptocurrencies, rather than banning them outright.

Speaking in the nation’s upper house, the Rajya Sabha, on Tuesday, a minister made it clear that the aim is to curb illegal cryptocurrency trading and ban their use for payments.

“The government does not consider cryptocurrencies as legal tender and will take all steps to eliminate the use of these crypto assets for funding illegal activities or as part of the payment system,” Minister of State for Finance Anurag Singh Thakur said during a question-and-answer session.

The Indian crypto community expressed shock on Friday after a notice in the Lok Sabha, the lower house of parliament, revealed that the government plans to begin deliberations on the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which plans to ban "private cryptocurrencies." However, the notice did not define the terms, leaving a backdoor for interpretation.

While the latest comments provide some clarity on the government's plans, the contents of the bill remain unknown.

India’s cryptocurrency industry has seen a resurgence since the central bank’s ban on banking services for digital asset firms was overturned by the Supreme Court last spring.

Thakur’s response also stated that the government is “proactively” exploring blockchain technology to “usher in the era of the digital economy.” (Cointelegraph)