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 Report
Until 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 industry
In 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.
Cryptocurrency Bill in India
On April 26, it was reported that the Indian government was discussing a new cryptocurrency law. The local news agency reported that the heads of ministries believe that in India, trade and issuance of cryptocurrencies should be prohibited. An anonymous government source said that the so-called “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill” will be adopted in 2019.
However, it is worth noting that it is not the first time when the media reports on the prohibition of cryptocurrency in India. For example, in December 2018, journalists of the CNBC TV18 TV channel stated that the government was preparing to recognize virtual currencies outlaw. The Indian edition New Indian Express refuted these data and indicated in the article that officials do not recommend banning virtual currencies.
One way or another, but the fate of cryptocurrency in India will be decided later this year. Whether the country will follow the example of China is still unknown. Given the fact that in 2018 the Indian authorities banned banks from working with crypto companies, the future of virtual currencies in the country is unlikely to be cloudless.
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