Indian Government Drafts a Bill to Ban Cryptocurrencies
The Ministry of Finance of India has published a report on the activities of the government in the field of cryptocurrency. Indian authorities have formed a committee that is exploring digital assets and blockchain technology. According to The Economic Times, officials are preparing a law to ban cryptocurrencies.
The Ministry of Finance of India Cryptocurrency ReportUntil July 23, 2019, employees of the Ministry of Finance must submit to the Supreme Court of India a report on legislative measures aimed at regulating the circulation of cryptocurrencies in the country. Now members of the committee are considering various options for bills which would ban completely or restrict the trading of digital assets. The Indian Income Tax Department is cooperating with the FATF (Financial Action Task Force on Money Laundering) to create optimal regulatory measures to curb illicit financial activities using virtual currencies.
FAFT position in relation to crypto industryIn April of this year, FAFT published a report in which it was indicated that the members of the G-20, including India, asked the intergovernmental organization's specialists to clarify the standards for regulating the circulation of cryptocurrencies. In response, FAFT representatives published the following message:
“Jurisdictions should apply a risk-based approach to virtual assets, virtual asset financial activities, and virtual asset service providers.”FATF has promised to update the “Guidance for a Risk-Based Approach to Virtual Currencies” by June 2019. Based on this document, the G-20 countries will develop and implement legislative measures regulating the trading of digital assets and the activities of commercial enterprises in the crypto sphere.