India has negotiated a total ban on cryptocurrencies, and cryptocurrencies are worrisome in India

According to a report by the Indian local media The Economic Times on April 25th, various departments of the Indian government are discussing a draft comprehensive ban on the use of cryptocurrencies.


Image source: visualhunt

According to reports, an informed official told the Economic Times that the government has begun inter-ministerial consultations on the draft of the 2019 Prohibition of Cryptographic and Formal Regulation of Digital Money.

A committee consisting of the Department of Economic Affairs of India (DEA), the Central Direct Tax Committee (CBDT), the Central Indirect Tax and Customs Committee (CBIC), and the Investor Education and Protection Fund Authority (IEPFA) supports a total ban on “selling, purchasing, and distributing all Type of cryptocurrency."

Since digital currency can be used for money laundering, the Commission is also considering prohibiting the use of digital currency under the Prevention of Money Laundering Act (PMLA). According to reports, the Ministry of Corporate Affairs said that cryptocurrencies were used in fraud schemes and targeted at credulous investors.

The Economic Times report is diametrically opposed to the December report. A report last December said that a different government committee suggested that the country legalize cryptocurrencies and stressed that it is widely believed that cryptocurrencies cannot be considered completely illegal.

In February of this year, the Supreme Court of India gave the Indian authorities four weeks to develop a cryptocurrency regulation policy. After that, the court will stop hearing cases related to cryptocurrencies, including requesting the withdrawal of the Reserve Bank of India. The complaint of the parties to the encryption ban.

In the same month, a team led by the Indian Minister of Economic Affairs issued a report stating that as cryptocurrencies are increasingly becoming a means of payment, they have a large impact on local fiat currencies.