Reports flying around earlier today have stated that "with a law, India plans lasting ban on cryptos". The breaking news was broadcasted earlier this morning by the economic times (ET).

The deeper insights into the article published by ET reveals only 'two new points". 

1) According to the statement submitted by a high ranking officer in the government, the finance ministry has moved a note to the inter-ministerial consultations and is pending approval.

2) Upon final deliberations, the note will be sent to the cabinet and finally to the parliament and if things go the way of previous deliberations, then a ban on crypto is imminent.

The supposed ban report is coming weeks after the Supreme Court gave RBI a memo, stating that the RBI circular of crypto banking ban was unconstitutional. According to the reports circulated by Economic Times, it should be understood that the report was talking about a note and not the ban itself.

However, as per some of the experts who are highly active in the crypto industry in India, the report is a pure clickbait. As per Mohammed Danish, co-founder of Crypto Kanoon, the news is BASELESS...a pure clickbait with misleading headlines as of now as Govt. has not disclosed its mind on the ban". He further added that; 

But we have to keep a watch on the recommendation of the Inter-Ministerial Committee (IMC) to the Cabinet. The recommendation of IMC will carry huge weightage.

On the other hand, Tanvi Ratna, policy advisor and CEO of Policy 4.0 elaborates that the supposed note was just like a circular to invite other ministries to the discussion if need be. She told CoinCrunch that; 

"It is simply a Government file used to invite other ministries for discussion”, 

It's worth to remind that the previously drafted law notes that anybody who trades in crypto when the ban is effective will be liable to spend up to 10 years in jail or pay an Rs. 25 crores fine. In her view, the government is now doing what they should have done after the draft bill to ban crypto was released last year.

This move is not unexpected or out of the blue. This was the expected course of action after the Finance Ministry had launched their report in Feb 2019 recommending a ban on cryptocurrencies”, added Tanvi Ratna.

Crypto community kicks against the impending ban

The Indian crypto community is still holding on as to what the latest news coming out of the country will spell for them and their investments. The majority of them are kicking against the impending regulation/ban, they noted that if the ban happens, things might go sideways on the part of crypto businesses.

Nischal Shetty(@nischalshetty), CEO at Wazirx has said on Twitter that he believes that the government will not try to stop a booming sector in the country. He further stated that it is just another FUD and the due process such as consultation and final approval will be submitted.

Firms and new startups to suffer if the ban happens

With the supposed ban aiming to take place, it is imperative to note that India is already on the shores of bankruptcy and would need these firms to bring a major boost to their economy.

New startups and crypto companies that have been eyeing the region because of the population of the Asian nation might rethink their next move to tap the Indian crypto market.