Crypto ban may drive black market trade

NEW DELHI : An overarching ban on private cryptocurrencies in India might prompt large investors to take their business underground, industry experts said.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 to prohibit private cryptocurrencies is scheduled to be tabled in the ongoing budget session of Parliament. “The fact is, crypto runs on the internet. The control does not rest with one person, one organization, or one country. Hence, it is not possible to ban crypto trading,” said Kumar Gaurav, founder and chief executive of online banking platform Cashaa.

Gaurav added the government can ban the “legitimate use of crypto”, which will eventually lead to international trading or the rise of the black market in India. “People might still trade but it will become difficult to track within the country.”