The Inter-ministerial Committee (IMC), established to examine Bitcoin and cryptocurrency regulations in India, states that the government should put a complete ban on cryptocurrencies.
India are on the verge of introducing a ban on cryptocurrencies
In a report filed on the 22th of July
, IMC advised the government to introduce a total ban on Bitcoin
. A part of the report says:
In the case of private cryptocurrencies, taking into account the associated risks and price volatility, the Group has suggested to ban cryptocurrencies in India. Conducting all activities related to cryptocurrencies in this country will be punished with a high fine.
Although the commission called for the banning of Bitcoin
, it also urged the government not to reject the idea of creating a national cryptocurrency. The panel established by the government also advised for a standing cryptocurrency committee to control new trends in the industry.
In addition to the report, the committee also presented a bill. Government officials and financial regulators are likely to use this project as a foundation for developing regulations that may include a total ban on cryptocurrencies.
The details of the report reduced the number of positive opinions about Bitcoin and other digital currencies that could have appeared after the comments published recently by the Minister of Finance.
In addition, the recommendation on fines and penalties for engaging in crypto transactions raises one of the worst concerns of stakeholders in the country.
Earlier there were reports of an upcoming change in law that was bound to be implemented and which stipulated imprisonment for people dealing with BTC and other cryptocurrencies.
India's attention focused on blockchain
While the committee demanded virtual currencies ban, it also recommended that the government should focus on blockchain technology. The report states, that there are many areas in which the implementation of the blockchain will certainly trigger an enthusiastic response. Banks and the entire financial sector are the ones that are pushing for this the most.
If the changes were made, these recommendations would put India in a similar position as China
, which decided to support blockchain
and banned Bitcoin.
The proposed ban may also sound like a final blow to the cryptocurrency exchanges in this country. Since the Reserve Bank of India (RBI)
has banned commercial banks from offering services to exchanges, many of them, such as Koinex or ZebPay
, have been forced to end their operations in India.