Inter-ministerial group suggests banning of private cryptocurrencies in India

An
inter–
ministerial committee has suggested
banning
of
private
cryptocurrencies, like bitcoin, and criminalising any activities related to virtual currencies.

It, however, pitched for introduction
of an official digital currency with a status
of a legal tender and appropriately regulated by the Reserve Bank
of
India. The report by the committee was released on Monday.

The government had constituted an
inter–
ministerial committee (IMC) on November 2, 2017, under the chairmanship
of the economic affairs secretary, with secretary
of the Ministry
of Electronics and Information Technology, Sebi chairman and an RBI deputy governor as members to study the issues related to virtual currencies, and propose specific action.

“As for
private
cryptocurrencies, given the risks associated with them and volatility
in their prices, the
group has recommended
banning
of the
cryptocurrencies
in
India and imposing fines and penalties for carrying on
of any activities connected…