A Ban On The Use Of Cryptocurrencies-The Indian government may be considering a legal ban on the use of bitcoin and other cryptocurrencies. The Government set up a panel in December 2017. Panel’s task was to come up with rules to regulate digital currencies. It was expected to submit the draft regulations by July 2018 but the application has since been delayed.
Financial Stability and Development Council
On Oct. 30, the 19th meeting of the Financial Stability and Development Council (FSDC), headed by Finance Minister Arun Jaitley, was held, and in the meeting, the issue of cryptocurrencies came up.
The council shared that in their meeting, they “reviewed the current global and domestic economic situation and financial sector performance. The working group deliberated on the issues and challenges of crypto assets/currency and was briefed about the deliberations in the high-level committee chaired by the secretary (economic affairs) to devise an appropriate legal framework to ban use of private cryptocurrencies in India,” the government’s Press Information Bureau (PIB) said in a release.
A Ban On The Use Of Cryptocurrencies-Earlier this year, the RBI dealt a hard blow to the cryptocurrency industry in India after it banned banks from having any business relationship with the exchanges or traders who do business in cryptocurrencies after July.
This has had a disastrous effect on the virtual currency ecosystem in India. Which led to a court battle between the RBI and crypto traders. The final verdict from the courts is yet to come. The court has directed the government to clarify its stand on the matter of cryptocurrencies. Furthermore advised to file an affidavit on it within two weeks. The situation has turned so dire that it led to the closing of operations of the country’s largest exchange, Zebpay. Despite the ban, according to estimates, there are still nearly 5-6 million cryptocurrency users in the country!