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Last month, the Indian government appointed a group of experts to draw up recommendations on the way forward in the cryptocurrency sector in the country.
That panel, as reported by CNBC TV18, has finally presented its report to the Indian finance minister.
One of the presumably advanced critical suggestions is the formation of a new legal framework that would see the Reserve Bank of India (RBI) authorized to ban all cryptocurrencies.
The panel report
According to CNBC TV18, that panel chaired by the Secretary of the Department of Economic Affairs (DEA), Subhash Chandra Garg, is underway with its drafts of proposals on virtual currencies.
Garg's group would present the report containing its recommendations to Finance Minister Arun Jaitley on Friday 7 December 2018.
Even if the content of the report or of its presentation has been made public, the news channel cites an anonymous source saying that the panel suggests "new law to regulate it [cryptocurrency] space."
Citing the anonymous source and referring to the state of the cryptocurrency regulation in the country, the note notes that the group's recommendation "categorically" wants these currencies "to be considered" illegal ".
To implement this recommendation, the government group suggests that the Reserve Bank of India (RBI) should issue guidelines that will "prohibit cryptocurrencies".
The anonymous source told CNBC TV18 that the panel also suggests that:
"The law should enforce punitive measures that the government and its investigative agencies can take in case it finds someone or any entity that trades or treats / retains it."
A "ban" on crypts
The contents of the alleged report have not been made public, but it is not the first time that the term "prohibition" is connected to the issue of cryptocurrencies in India.
The RBI guidelines for banks and financial institutions of April 2018, which warned against encryption activities, were misinterpreted as a general ban on cryptography platforms and exchanges.
In February, the finance minister told MPs that the government did not consider cryptocurrencies to be legal tender, a position the RBI repeated in the sworn statement to the Supreme Court in September.
The finance minister, however, noted that the government would need to institute measures to prevent the use of cryptocurrencies in illegal activities such as money laundering.
In his comments on the CNBC TV report 18, the managing director of the cryptocurrency exchange Wazirx Nischal Shetty said that such news of a "ban" have emerged earlier. However, he said that it is advisable not to "jump to conclusions" before the committee report is published.
The founder of Coin Crunch India Naimish Sanghvi, a publication based in India, shared his opinion on the recommendations, stating that such suggestions "do not always convert immediately to the law".
Naimish also added that "If they prohibit it, they must change the act of monetization" which requires parliamentary approval (recommendation) to become law.
Whatever happens in the end will depend on the panel's actual recommendations when the relationship becomes public. Any eventuality could still end up in the Supreme Court, whose most recent cryptography trap was that the government submit its official grip to cryptocurrencies.
Despite the apparent "ban" on cryptography, CNBC TV18 reports that India could develop in the future "A new virtual sovereignty or cryptocurrency,"With such a move it is due to override "Global circumstances".
(Source: CNBC TV18)
disavowal: This is not an investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.
