There's bad news for people who deal in cryptocurrencies in India. Buying and selling cryptocurrencies in India may soon be illegal as a government committee has made that recommendation. The centre is all set to ban private cryptocurrencies after an inter-ministerial committee (IMC) suggested dealing in virtual currencies as a criminal act.
PM Modi-led NDA government is preparing to make a law to ban cryptocurrencies like Bitcoin in India. IMC head and Finance Secretary Subhash Chandra Garg has recommended govt heavy penalties of up to Rs 25 crore and a jail term up to 10 years for anyone who is found dealing in cryptocurrency.
“The Committee notes with serious concern mushrooming of cryptocurrencies almost invariably issued abroad and numerous people in India investing in these cryptocurrencies. All these cryptocurrencies have been created by non-sovereigns and are in this sense entirely private enterprises,” the report says.
Under this, if any individual mines, generates, holds, sells, transfers or issues private cryptocurrency in India, will be punished and have to pay penalties or may land in jail. In India, every activity related to cryptocurrency will be called a crime.
Sebi and RBI members in the Committee:
An inter-ministerial committee headed by the Secretary of Economic Affairs has suggested restricting private virtual currency (cryptocurrency) in the country. The government had constituted an inter-ministerial committee headed by Subhash Chandra Garg on November 2, 2017. The committee has been formed to study the issues related to virtual currency and suggesting action for it. Other members of the committee include Secretary of Electronics and Information Technology, Chairman of SEBI and Deputy Governor of Reserve Bank.
Committee report on Cryptocurrency:
Other than Bitcoin, there are many virtual currencies such as Ionium, Ripple and Cardano. According to the report, currently, 2,116 virtual currency is in the deal, whose market capitalization is $ 119.46 billion. The committee has also suggested drafting a 'virtual currency ban and official digital currency regulation bill', 2019. It has been stated in the release that the draft of this report and bill will be reviewed with all related departments and regulatory authorities. Only then will the government take a final decision on this.