After months of speculation around the recommendations of the cryptocurrency committee, the government publicly released the report submitted by the Inter-Ministerial Committee (IMC). In addition, the government also published a press release encapsulating the key recommendations. The most shocking takeaway from the report – A complete cryptocurrency ban in India.
The key takeaways from the report include:
- A complete ban on cryptocurrencies, because of the risks and volatility associated with ‘private cryptocurrencies’.
- Encouragement of Distributed Ledger Technology (DLT)-based systems in areas such as loan-issuance tracking, collateral management, fraud detection and other financial uses.
- Introduction of an official digital currency
- The draft Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019.
The committee report will come as a huge blow to the cryptocurrency community who were increasingly hopeful after Anurag Thakur’s recent statement around cryptocurrencies in India and the government’s commitment to the FATF recommendations.
The report saw some sharp reactions from the cryptocurrency community in India.
There seems little doubt that the government has indeed made up its mind to ban cryptocurrencies in India. Is this the end of the road for crypto in India?
We have done an analysis of this report on our YouTube channel for our Hindi speaking viewers. Do check it out: