The cryptocurrency community is in a dilemma as the Indian government recently announced that it was planning to introduce legislation to ban cryptocurrencies. The finance ministry, on June 12, has passed a draft cabinet note which seeks to set up a legal framework for banning cryptocurrency in India. According to media reports, the note has been shared with the other ministries for consideration. However, the details of the draft are not available.
The report stated that the government would lean on a previously drafted bill by Garg committee, from July 2019, which proposed all forms of cryptocurrency are banned and anyone caught holding them could face a hefty fine and up to ten years imprisonment.