India reveals plans to ban cryptocurrency trading

According to sources briefed on the matter, the federal cabinet will discuss the bill first before it is sent to parliament. While the government body encourages blockchain technology – which enables the existence of cryptocurrency – it does not support cryptocurrency trading, two sources said.

In 2018, the Central Bank of India banned crypto transactions following several fraudulent cases in the months after Prime Minister Narendra Modi had banned 80% of the country’s currency. The Supreme Court lifted the ban earlier this year after cryptocurrency exchanges responded with a lawsuit.

After their win in court earlier in March, trading in India saw a 450% surge in the two months that followed, according to TechSci Research.

The report also said that a renewed ban could affect over 1.7 million crypto traders in the country, as well as the number of companies looking to set up their own trading platforms.