Indian government organizations recommend a total ban on bitcoin, or will affect legislation

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:

Crypto (2)

“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.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Demystify Bybit's new product "black technology", you can open both long and short, insurance contracts!

If you have seen Jobs's Apple conference, Rebus' Xiaomi conference, or Lao Luo's wee phone conference....

Market

Which exchanges and currencies are in the process of brushing? New report decrypts the real trading situation of the encryption market

BTI's algorithm connects to the exchange through its public API and websocket. The transaction is analyzed and t...

Market

Why SEC Chairman Gary Gensler is Cracking Down on the Crypto Market: Latest Speech

SEC Chairman Gary Gensler gave a speech on June 8 at the Piper Sandler Global Exchange and Financial Technology Confe...

Opinion

One year after the FTX crash, have the once badly affected market makers in the crypto world recovered?

Alameda Research is the core trading company of Sam Bankman-Fried's failed crypto empire, and after the company's col...

Market

Dialogue with Circle CEO How can USDC recover the market lost due to SVB's bankruptcy?

In this interview, Laura Shin and Jeremy Allaire discussed various topics including Coinbase's investment in Circle, ...

Market

Interpreting the Current Situation of Digital Asset Custody Opportunities and Challenges for Institutional Investors

With the increasing popularity of digital assets, the demand for institutional-level digital asset custody from famil...