India Mulls Cryptocurrency Blanket Ban

Nov 01, 2018 at 20:46

The Indian government may issue a nationwide ban on the use of private cryptocurrencies.

In a press release, the Financial Stability and Development Council (FSDC) “deliberated on the issues and challenges of crypto assets” and are “to devise an appropriate framework to ban [the] use of private cryptocurrencies in India” during its 19th meeting.

According to local legal team Crypto Kanoon, the statement from the FSDC might mean that buying, selling, and trading of cryptocurrencies—but not possession—may be banned.

The meeting was headed by Finance minister Arun Jaitley and was attended by representatives from the banking sector. Economic affairs secretary Subhash Chandra Garg, who also heads the panel formed to create rules for virtual currencies, was also present in the meeting.

Garg, in an interview with ET Now last June, said draft regulations are likely to be formed last July. The draft has since been delayed.

The cryptocurrency ban comes several months after the government’s central bank prohibited banks and businesses from dealing or processing cryptocurrencies last April 5, a move that have lead to a shutdown of India’s major crypto exchange, Zebpay.