By A new draft bill which seeks to completely ban all cryptocurrencies is allegedly doing the rounds in various departments of India’s government as per a report from The Economic Times on April 25th.
A reputable official who is reportedly familiar with the matter told the Economic Times that the government has begun “inter-ministerial consultations” pertaining to the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ draft bill.
A new committee has been formed with full support of the idea of completely banning the “sale, purchase and issuance of all types of cryptocurrency.” The committee includes the Department of Economic Affairs (DEA), the Central Board of Direct Taxes (CBDT), the Central Board of Indirect Taxes and Customs (CBIC) and the Investor Education and Protection Fund Authority (IEPFA) among others.
Furthermore, this new watchdog committee is apparently also weighing in on the idea of banning digital currencies under the Prevention of Money Laundering Act (PMLA) as the asset class could be utilised for money laundering. The Ministry of Corporate Affairs allegedly stated that digital currencies are used in deceitful schemes to “defraud gullible investors”.
The report from the Economic Times is a contrary piece compared to that of reports from December 2018, in which many stated that another government wing suggested that cryptocurrencies should be legalized in the nation.
Earlier this year, in February, India’s Supreme Court granted Indian authorities 4 weeks to solidify crypto regulation policies, before the Court would stop dealing with crypto-related cases and this included those who have been demanding a reversal for the crypto circular which was released by the Reserve Bank of India.
During the same time, the Indian Economic Affairs Secretary lead a panel discussion, releasing a report which cited concerns pertaining to the impact that cryptocurrencies have on local fiat currency in the case of digital currencies being utilised for payments.
Comments