Bitcoin ban in India – Government wants to ban crypto currencies
The possible ban of Bitcoin in some countries is now a back and forth which has been digging through the media for quite some time. We have deliberately decided against posting every Mini News here until there is more clarity.
This seems to exist now, because there is the report of the Indian Ministry of Economy about crypto currencies, which was published together with a bill on its website. What it says now and what the possible ban could mean you can find out in this article. BTC is again in the news worldwide.
Bitcoin & Crypto ban (Ban) in India – IMC report sees Bitcoin & Co as a risk
Only recently, Finance Minister Anurag Singh Thakur confirmed that crypto currencies such as Bitcoin are not yet banned. However, he did not rule out that this situation could change as the official report and the resulting draft law of the Ministry of Economy were still pending.
But now facts have been created and the IMC (Inter-Ministerial Committee), formed on November 2, 2017 after several years of consultation, presented this report to the government on February 28, 2019. IMC members included the chair of Secy (EA), Secy (MeiTY), Chairman (SEBI) and Dy. Governor, as well as the RBI (Reserve Bank of India) with some members. This committee should deal with the issues related to virtual currencies and propose specific measures in this matter.
This report makes it clear that, from the Committee’s point of view, crypto currencies pose an enormous financial and security threat to the country and should therefore be banned. The report, however, sees DLTs and blockchain technology as a major innovation and progress for the creation of digital money, including for the Central Bank of India (CBDC). An “official digital currency” could therefore be a possible alternative.
India and the ban on Bitcoin and Cryptos
The Ministry of Economy’s report also contained details on the possible number of Indian Crypto investors. However, this number cannot be accurate, as many will have preferred local and discrete trading because of the uncertain legal situation.
- In February 2018 there were about 5 million Crypto investors on 24 stock exchanges in India and the trading volume with crypto currencies is in the order of 1,500 Bitcoins per day.
- The report has planned to discontinue all crypto currencies, or the central government will determine how they are to be disposed of.
- Group (The Committee?) has recommended banning crypto currencies in India and imposing fines and penalties for continuing all activities related to crypto currencies in India.
The Committee held three meetings from November 2017 to January 2019 and prepared the report. Its last meeting was held on 9 and 11 January 2019. After careful consideration and consultation between the leading member of the Central Bank of India, the SEBI Chairman, the Ministry of Finance, and the DEA, the bill was approved.
Although the IMC recognises the regulatory status of crypto currencies in countries around the world such as Japan, New York, Switzerland, Russia, China, etc., India and the Committee consider a ban to be necessary.
The last thing between the committee’s proposal and a full Bitcoin ban is India’s Supreme Court. On 23 July, the Apex Court is expected to decide whether or not the RBI ban on Bitcoin is unconstitutional.