It will be very interesting to see where all of this goes. India is the only major country I am aware of that outright banned and outlawed Bitcoin and other cryptocurrencies. I think this situation is worse than the SEC in the US. Most countries who are aggressive have a clear motive which is “we want to regulate and tax cryptocurrency” but India has taken it a step farther which is alarming. What some regulators don’t seem to understand or care about is that this huge amount of money from both investors and exchanges can be moved in an instant. If it gets banned then people may just physically and virtually move outside of that jurisdiction and never return. Banning cryptocurrency may seem like an upside to central bankers, but with short-term gain. In fact I would argue that outlawing it will only make cryptocurrency gain in adoption and popularity. The only doomsday scenario that would possibly be effective is if all major governments banned cryptocurrency which I don’t see happening, as it is literally shooting yourself in the head financially. I think these sorts of decisions will be seen in the future, as being extremely silly, inline with those who wanted to kill eCommerce and digital media purchases in the 90’s and early 2000’s.
With that all said I really wonder if the law would uphold this ban which I think under any country’s laws would be found illegal. This is hard to say as India has recently invalidated some of its own notes. It may be ultimately found illegal but if I were any of these firms I would have moved away by now and consider returning once the legal issues have been sorted out. But with India’s economy being so vast and strong the firms in question have a lot to gain by remaining and pushing for the legal acceptance of cryptocurrency in India.