Government plans to ban all private Cryptocurrencies: FM Sitharaman

On Tuesday, in a reply to a question in Rajya Sabha whether central government is planning to issue strict guidelines on cryptocurrency trading, Finance Minisrer Sitharaman said, “A high-level Inter-Ministerial Committee (IMC) constituted under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies and propose specific actions to be taken in the matter recommended in its report that all private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India.”

“The central government will take a decision on the recommendation of IMC and legislative proposal, if any would be introduced in the Parliament following the due process,” FM added.

Earlier, minister of state for finance Anurag Singh Thakur said that a cryptocurrency bill is being finalised and it will be sent to cabinet soon.

The government has listed a bill that will prohibit “all private cryptocurrencies” in India and provide a framework for creation of an official digital currency to be issued by the Reserve Bank of India. Titled “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021,” the bill may be considered in the ongoing Budget session of Parliament.

In 2018, the Reserve Bank of India (RBI) had banned banks from processing transactions relating to cryptocurrency. However in March 2020, Supreme Court has uplifted the ban.

Earlier this month, the RBI said that it has plans to bring a digital version of the Indian Rupee.

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