1 August 2026
Government Of India Introduce Bill In Budget Session To Ban Crypto
Today in India’s 17th budget session of Lok Sabha, the government has introduced a bill providing for the banning of all private cryptocurrencies in India such as bitcoin, ether, ripple, and others. The bill also states the creation of a legislative framework on an official digital currency. As per the RBI booklet on payment systems, they are exploring whether to issue a digital version of the rupee.
The central bank booklet said, “Private digital currencies have gained popularity in recent years. In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks. Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and, in case there is, how to operationalize it.” Previously when RBI ban on the use of cryptocurrencies was overturned by the Supreme Court in March 2020 creating a vacuum in the regulation of cryptocurrency in India.
Back in 2019, the ban on cryptocurrency bills was not introduced in Parliament. However, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the order of business said that certain exceptions to promote the underlying technology of cryptocurrency and its uses would be allowed.
Last year there was a surge in crypto investors in India. The Indian cryptocurrency exchange CoinDCX and Coinswitch Kuber have also raised early-stage funding for their operations. This bill could end the cryptocurrency industry in India. The detailed information of the bill is yet not released to the public.
The professionals in the crypto industry responded that the bitcoin and other major cryptocurrencies were 'public' in nature and hence not within the purview of the ban on private cryptocurrencies in the bill. Cryptocurrencies are considered public digital currency globally because they are open and public, where any participants can verify the transactions.
At the time of the Banking Ban (April 2018- March 2020), in the official communication from RBI, private was deemed as Bitcoin and other public blockchains which was a wrong classification. And even today, there has been no clear communication, on public and private classification. CoinDCX CEO, Sumit Gupta, tweeted, “ It must be explicitly covered”
"Over 7 Million crypto holders in India. Over $1 Billion+ crypto assets owned by Indians. Will the Government ban & erase all that wealth overnight? I don’t think so. The government will involve us, the industry, in further discussions and we’ll present our points," said Nischal Shetty, CEO, WazirX, a cryptocurrency exchange.
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