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Indian Officials Call for Banning Private Cryptocurrencies

Kristina Frunze | Nov. 1, 2018
Indian Officials Call for Banning Private Cryptocurrencies

The Secretary of Economic Affairs in India called for ban on private cryptocurrencies. Shri Subhash Chandra Garg, suggested that the Council should “devise an appropriate legal framework to ban the use of private cryptocurrencies in India.” 

1 November 2018 – India’s Secretary of Economic Affairs has reportedly suggested that the country’s Ministry of Finance should impose a ban on “private cryptocurrencies.” The report that has been published by the Indian government press center provides details regarding this announcement. 

Use of private cryptocurrencies in India

The Financial Stability and Development Council (FSDC) is led by the Indian finance minister Arun Jaitley. The FSDC held a meeting concerning the current economic and financial situation in India. The meeting saw a participation from a number of senior government and financial regulatory officials. 

The secretary of the Department of Economic Affairs, Shri Subhash Chandra Garg, suggested that the Council should “devise an appropriate legal framework to ban the use of private cryptocurrencies in India.” He further noted that it is necessary to “encourage” the use of distributed ledger technologies (DLT), such as blockchain, in the country.

Following on this, a team of Indian lawyers, Crypto Kanoon, has posted a quote from the official press release on Twitter, questioning whether the potential ban has the possibility to be extended to possessing digital currencies and trading. 

Reserve Bank of India

The discussion at the council was held right after a hearing in Supreme Court of India last week. The hearing has set a deadline for the Indian government to make its position on crypto market clear. The Supreme Court of India requested that officials present their stance regarding cryptos by the middle of November. 

The Indian cryptocurrency community has been experiencing some difficulties caused by the imposition of a partial ban on crypto industry for already seven months. Earlier this year, the Reserve Bank of India (RBI) required that local banks halt all operations with persons or legal entities that are involved in cryptocurrency business. 

Some of the crypto companies in India have filed a complaint against the RBI’s decision in India’s Supreme Court as a response. The Court continued to uphold RBI’s ban, postponing the hearings multiple times.

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