Following reports that the Indian government is moving towards an outright ban of private crypto ownership in the country, the Internet and Mobile Association of India (IAMAI) has asked the government to reconsider its proposed legislation. The Internet association believes the government’s move is misplaced. They want Indian regulators to introduce robust mechanisms to supervise the nascent technology, as reported by The Hindu Business Line.

Indian government plans to ban all cryptocurrencies. 

The Indian government has been planning to take action against the crypto industry for some years now. In 2018, it imposed a ‘blanket ban’ on crypto use in the local economy. The Reserve Bank of India (RBI) then decided to launch an experimental project into creating central bank digital currencies (CBDCs). Nothing has been forthcoming since. The crypto community was able to overthrow the government’s ban in a Supreme Court judgment, but the atmosphere has not been favorable for crypto adoption. The government has repeatedly painted cryptocurrencies in a bad light, calling them ‘Ponzi’ schemes out to swindle the masses.

The finance minister hints at exploring other options as well.

As reported earlier, the Indian finance Nirmala Sitharaman minister said, “On the cryptocurrency, yes, a lot of negotiations discussions are happening with the Reserve Bank because the supreme court order had very clearly told that the government has to take a call on the matter. We are talking with the Reserve Bank,” she informed. She continued, “Obviously, the Reserve Bank will be taking a call on how what kind of an official currency, cryptocurrency, will have to be planned and how it has to be regulated, but also we want to make sure that there is a window available for all kind of experiments which will have to take place in the crypto world.”