India plans to bring law to ban crypto trading: Report

The Indian government is reportedly planning to introduce a new law to ban trading in cryptocurrencies.

Bloomberg reported the news on Tuesday, citing "people familiar with the development." India's union cabinet, or the council of ministers, is said to be discussing the crypto bill "shortly" before sending it to Parliament.

Subramanian Swamy, a member of Parliament in Rajya Sabha, the Indian Parliament's upper house, told The Block that he has not heard of the crypto ban bill being introduced. "It will be madness if they do," said Swamy.

Indian lawmakers have returned to Parliament for the first time since the start of the coronavirus pandemic. The Parliament's monsoon session began yesterday and will run through October 1.

Today's report appears to be in line with news from June, which said India's finance ministry is said to be seeking inter-ministerial consultations on the crypto ban. Legal and regulatory experts told The Block at the time that if discussions happen, the process would be long and take time.

Update (September 16): This story has been updated to include comments from Subramanian Swamy, a member of the Indian Parliament.