The Ministerial Committee (IMC), established to investigate Indian bitcoin and cryptocurrency regulations, said the government should ban virtual currency.
In a report submitted on Monday, the IMC recommended that the government completely ban Bitcoin. The report is excerpted as follows:
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“As for private cryptocurrencies, the Committee recommends against the use of cryptocurrencies in India and penalties and penalties for any activities related to cryptocurrencies in India, given their risk and price fluctuations.”
Although the committee called for a ban on bitcoin, it also suggested that the government not give up the idea of creating a national cryptocurrency. The government-sponsored committee also called for the establishment of a cryptocurrency standing committee to monitor new trends in the industry.
In addition to the report, the Commission submitted a draft. Government officials and financial regulators may use the bill to draft encryption regulations that include a total ban on Bitcoin.
The positive sentiment surrounding bitcoin and cryptocurrencies disappeared because of the report. Earlier, the country’s finance minister said that the announcement that Bitcoin had not been banned for the community had ignited hope.
In addition, the recommendation to impose penalties and fines on those engaged in encrypted transactions has raised some concerns among stakeholders in the country.
Earlier reports said that an upcoming law in India would cause people involved in Bitcoin and cryptocurrency transactions to go to jail.
While promoting the Bitcoin ban agenda, the committee also recommended that the government focus on blockchain technology. According to the report, there are many positive application scenarios in the blockchain in the banking and other financial sectors.
If these proposals become law, India will, like most countries, pursue only blockchains, not bitcoins. Earlier this year, the Reserve Bank of India (RBI) released a financial technology regulatory sandbox to exclude cryptocurrency-related business.
The ban may also sound the last alarm for the Indian exchange. Since the Bank of India banned commercial banks from providing services to cryptocurrency exchanges, many exchanges such as Koinex and ZebPay have been forced to close their operations in India.