Cryptocurrencies Are not Prohibited in the Country

Bitcoin will remain legal in India as long as lawmakers are working on regulation, a government spokesman said.

Answering
On the question of clarifying the views of the state on cryptocurrency, Anurag Thakur, the Minister of Finance and Corporate Affairs of India, rejected the suggestion that all cryptocurrencies in the country are prohibited.

These comments contradict the content of the proposed bill, which appeared
online this week. It sets out plans for a total ban on cryptocurrency and a penalty of fine and / or imprisonment for their use. The document, posted on the Internet by a local lawyer, apparently served as the basis for questions to Thakur, who did not directly refer to its content.

“Taking into account the issue of regulation of cryptocurrency, the government has established an Inter-Ministerial Committee, chaired by a secretary who will report to the government,” he said.

In addition, Thakur noted that existing laws apply to cryptocurrencies while the government is developing special regulations.

“Now there is no separate law to resolve issues related to cryptocurrencies. Consequently, all interested ministries and law enforcement agencies, such as the Central Bank, the Law Enforcement Administration, the Tax Service, etc., are taking measures in accordance with the current legislation, ”he confirmed. “Similarly, the police and the courts are taking action on crimes related to cryptocurrencies. In addition, given the risks of cryptocurrency, the government and the Central Bank issue recommendations, press releases and circulars to the public. “

After the emergence of the bill to ban cryptocurrency, a well-known cryptocurrency enthusiast, venture investor Tim Draper, spoke
with harsh criticism of the government of India. In particular, he stated that “the government of India is miserable and corrupt.”

Due to the lack of regulation, the issue of a ban on banking services to cryptocurrency companies initiated by the Central Bank of the country is still not resolved, and recently Facebook declared that it would not launch Libra in India due to regulatory issues.