Golden Outpost | The Indian government countered the Supreme Court to enact a law to ban cryptocurrencies

On March 4, 2020, the Supreme Court of India ruled that the Bank of India (RBI)’s 2018 ban on banks providing cryptocurrency trading services was unconstitutional. The industry generally believes that the spring of India’s cryptocurrency industry has come.

Jinse Finance once issued an article stating that "India's Supreme Court overturned the cryptocurrency ban, it is too early to be happy."

Now comes the follow-up.

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On June 12, 2020, according to the Economic Times of India, the Indian government is seeking to enact a law to ban the use of cryptocurrencies. Because the government believes that a law will be more effective than a ban by the Reserve Bank of India (RBI). A senior government official said "the Treasury has submitted a proposal for inter-ministerial consultations" which will then be brought up to Cabinet before being brought to Parliament for discussion and a vote.

Golden Evening News | List of important news on the evening of March 1: 12:00-21:00 Keywords: war, transfer, market value, pyramid scheme

1. Turkey stated that military operations against Syria have begun, but it does not want to conflict with Russia in Syria.

2. Nearly 8.6 million USDT was transferred to Binance, worth about 8.62 million USD

3. The total market value of global cryptocurrencies is less than 220 billion US dollars

4. Jinan launches "identity health code" blockchain to escort data security

5. 80% of the trading volume of gambling DApps comes from encrypted whales

6. The current total contract position of the entire BTC network is 2.699 billion US dollars

7. The police cracked the huge pyramid scheme of Seal coin (Hill chain) [2020/3/2]

Indian media stated that this latest proposal is a counterattack to the Supreme Court of India judgment on March 4, 2020. At the time, India’s Supreme Court ruled that the Reserve Bank of India’s (RBI) 2018 ban on banks offering cryptocurrency trading services was unconstitutional.

Golden Relativity | Xiang Lipeng: Illegal use of the blockchain will pose risks to the real economy: In this issue of Golden Relativity, Xiang Lipeng, a senior engineer at the Ministry of Industry and Information Technology’s 5th Institute, said that the blockchain is still in its early stages of development, but compared to last year , has been applied and explored in various industries, and has made great progress, but also exposed many problems and risks. Among them, there are risks caused by immature internal technology; there are also risks caused by external improper use and illegal use. Although the imperfection of technology has a greater risk, there is always a way to solve it, so the latter should arouse our attention. Problems at the technical level include: security risks in the system, low efficiency and difficulty in meeting application requirements, data leakage risks, smart contract loopholes, production system loopholes, and accounting system loopholes, etc. Non-technical issues include: ICO (token issuance financing), improper use and illegal use, etc. For example, compared with a blockchain without a token, a blockchain with a token can build a token economy ecology, which is conducive to data collaboration to achieve data value-added. However, it violates financial laws and violates regulatory laws and regulations, which may cause local or even systemic risks. This will have a serious impact on this new thing and hinder its role in serving the real economy. [2018/8/31]

One of the reasons why India’s Supreme Court overturned the RBI’s cryptocurrency ban at the time was that “there is no law prohibiting virtual currencies,” meaning that once there was such a law, the judgment would not stand.  At that time, some Indian experts suggested that "the government should step in at this time and formulate a law to prohibit the banking industry from providing services to the cryptocurrency industry within five years."

It now appears that the Indian government has begun to formulate such a law.

Moreover, the Reserve Bank of India is also dissatisfied with the judgment of the Supreme Court of India. After India's Supreme Court overturned the central bank's cryptocurrency ban, the RBI is already preparing to reopen its appeal, while continuing to ban major banks from providing payment services for cryptocurrency transactions in India.

The Indian government's policy on cryptocurrencies, like many other countries, also wants to treat cryptocurrencies and blockchains separately.  

In July 2019, a high-level group led by former Indian Finance Minister Subhash Garg drafted a draft law, advocating the prohibition of all forms of private cryptocurrencies, while requiring the Indian government and the central bank to study the introduction of official cryptocurrencies. cryptocurrency. The draft law also proposes that those who directly or indirectly engage in cryptocurrency transactions will be fined or imprisoned for a term not less than one year but extendable to ten years.

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