Regulatory measures affecting blockchain and cryptocurrency projects often create a panic reaction among community members. In most cases, any regulatory measure will ultimately lead to either restricting or banning a specific type of activity. In India, a new proposal has been submitted to effectively prohibit cryptocurrency trading and use, although it has yet to be approved in the coming months. Below are a few key takeaways.
This is Still a Mere Proposal
Perhaps the most important aspect to highlight first and foremost is how the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019” is not an official law in India at this time. In fact, it is a mere proposal which has been submitted by a dedicated panel tasked with drafting cryptocurrency regulation. As one would expect, they opt for the hasty approach to ban this type of activity, instead of fostering its growth over the coming years.
While this proposal is now out in the open, it has yet to go through a round of public feedback….