India’s official report on cryptocurrencies has shaken crypto startups and investors
The report is bullish about blockchain, but has called for a ban on “private cryptocurrency”
No exit plan for existing asset holders, even as cryptocurrency trading likely to be criminalised
It’s official, the Inter-Ministerial Committee led by Subhash Chandra Garg, secretary, Department of Economic Affairs (DEA) has submitted its report which recommends a ban on cryptocurrency in India to the finance ministry and the same has now been made public.“It’s a step in the right direction. This will finally end the economic anarchy that cryptocurrencies in India had created. With such stringent actions which include up to 10 years of jail as punishment and up to INR 25 Cr of penalty, the government will be able to contain illegal tradings.”Speaking about this incongruity, BuyUCoin’s Thakral said, “It’s clear from the report that the government wants to boost distributed ledger technology but they need to understand that you can’t boost DLT like blockchain while completely banning crypto assets.”“Crypto cannot really be banned due to the decentralised nature of the technology.”Somani is hopeful for a respectful exit, “We will have to wait to see what the retroactive actions look like and allow the virtual currency investors and holders to unwind their positions respectfully.”
As reported, the IMC has recommended a complete ban on cryptocurrencies in India either an asset or currency in the country; however, the committee is agnostic about exploring the idea of RBI-backed digital currencies and has welcomed the ongoing innovations happening around the underlying technology, known as blockchain.