India Bans Crypto in Finalized Legal Framework for Crypto

Dec 11, 2018 at 23:30

The Indian government panel tasked to make a recommendation to government with respect to cryptocurrency regulations, has submitted its report to the country’s finance minister with the suggestion of banning the use and trade of cryptocurrencies.

“The panel has suggested that a new legal framework within the Reserve Bank of India (RBI) guidelines should be brought in to ban cryptocurrencies and the law should clearly specify that any kind of dealing in such currencies should be treated as illegal,” an unidentified source was quoted in a report by the CNBC TV18.

The source added that the panel suggested “a new sovereign backed virtual or cryptocurrency may be proposed considering global circumstances; probably at a later stage.”

Details of the content have yet to be formally announced, stirring speculation among industry participants why the information has not made public.

However, Nischal Shetty, CEO of Indian crypto exchange Wazirx, told industry players to kill speculations at this point of uncertainty.

“Several times we’ve heard such stuff in the news before. Until we get to see the report I would not suggest anyone to jump to conclusions,” Shetty told news.Bitcoin.com.

However, the unnamed source explained that imposing a blanket ban will be confronted with legal hurdles such as amending India’s Coinage Act, adding that any change to the existing law to account for cryptocurrency “has to go to parliamentary approval as a law.”