India Mulls Ban on Crypto Transactions | CORPORATE ETHOS

India Mulls Ban on Crypto Transactions

By: | November 1, 2018

Nov 1: Bitcoin and crypto currencies might soon get a complete ban in India. Virtual currencies and their issues were raised at the financial stability and development council (FSDC) meeting headed by the finance minister Arun Jaitley the other day.

In a release, the government’s Press Information Bureau (PIB) said the council discussed the issues and challenges of crypto assets/currency. The high-level committee headed by the economic affairs secretary to plan a suitable legal framework to ban the use of private cryptocurrencies in India was also informed about the discussions.

By the term ‘use of cryptocurrencies’ and Crypto Kanoon meant buying, selling, transacting, and conversion of the rupees may be banned. Crypto Kanoon is a platform which conducts regulatory analysis and spreads legal awareness about the Indian digital currencies.

People representing the banking sector and market regulator were also part of the meeting. As per the PID release, secretary in the department of economic affairs, Subhash Chandra Garg who heads the cryptocurrency panel also participated in the meeting.

The panel, with a mission to make rules to regulate digital currencies, was set up in December 2017. The draft regulations were to be submitted in July, but got delayed. The panel also consists of the deputy governor of the Reserve Bank of India (RBI), BP Kanungo and the chairman of market regulator Securities and Exchange Board of India, Ajay Tyagi.

RBI dealt with a huge set back to the Indian cryptocurrency industry after it forbid the banks from having any business relationships with the exchange after July. This, in turn, created chaos in the Indian cryptocurrency world. Worsening the situation, Zebpay, India’s largest cryptocurrency shifted out of the country. Even after this, India has around 5-6 million cryptocurrency users.

The exchanges are had moved to the supreme court against the RBI and the government. The court directed the government to make clear its stand on the cryptocurrencies issues on October 26. The government was also advised to file an affidavit on this.