Timeline:
- The Government of India had constituted an Inter-Ministerial Committee (IMC) in 2017 under the Chairmanship of Secy (EA), with Secy (MeiTY), Chairman (SEBI) and Dy. Governor, RBI as Members, to study the issues related to virtual currencies.
- The Committee has submitted its Report along with Draft Bill ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’ to the government which will now examine it before the Government takes a final decision.
Key highlights of the report:
- The Group has highlighted the positive aspect of distributed-ledger technology (DLT) and suggested various applications, especially in financial services, for use of DLT in India.
- Given the risks associated with private cryptocurrencies and volatility in their prices, the Group has recommended banning of the cryptocurrencies in India and imposing fines and penalties for carrying on of any activities connected with cryptocurrencies in India.
- It has also proposed that the Government keeps an open mind on official digital currency.
- As virtual currencies and its underlying technology are still evolving, the Government may establish a Standing Committee to revisit the issues addressed in the Report as and when required.
