The cruptocurrency market which gained ever more pace during the lockdown may face turbulence as there is being a call made by the government to curb the trade of these digital currencies and for it there can be a law sooner.
Earlier the apex court kept aside the RBI's circular saying banks and other financial entities not to provide crypto related services. And ever since players in the sector have been eyeing clarity from the centre.
"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," a government official told a leading online business portal.
The government has been holding consultations with law ministry, ministry of information and technology and the RBI for a framework of a law that will formally end trading in cryptocurrency in India, the official added.
"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," the official said.
In the year 2018, RBI banned entities from offering services to individuals as well as business engaged in the business of crypto. Thereupon, apex court junked the RBI circular and said citizens had the right to create a new industry of cryptocurrencies and exchanges along with the fundamental right to trade.
Further in the wake of the coronavirus led lockdown, there has been a business worth several million dollars being done on a weekly basis. More investors have now parked their money into these assets given the weakness in return from other avenues.