‘Will take all measures to eliminate use of crypto-assets,’ says govt
A high-level inter-ministerial committee recommended that all private cryptocurrencies, except any cryptocurrency issued by the state, be prohibited in India
- Aug 11, 2021,
- Updated Aug 11, 2021 10:17 AM IST
The government said that it will take all measures to eliminate the use of crypto-assets in funding illegitimate activities. “The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,” said Minister of State for Finance Pankaj Chaudhary in Rajya Sabha. He added that the government will explore the use of blockchain technology to usher in the digital economy.
A high-level inter-ministerial committee constituted under the Chairmanship of Secretary (Economic Affairs) to study issues related to virtual currencies and propose specific actions to be taken in the matter recommended that all private cryptocurrencies, except any cryptocurrency issued by the state, be prohibited in India.
The minister added that the Centre would take a decision on the IMC’s recommendations and it would be introduced in the parliament in due process.
This comes after RBI Governor Shaktikanta Das said recently that the apex bank has major concerns on cryptocurrencies traded in the market. "Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability. We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government," Das had said in May.
He had also said that the RBI is working on a digital version of a fiat currency, and is currently "assessing the financial stability implications of introducing such a Central Bank Digital Currency (CBDC)".
Despite the government and apex bank’s concerns, excitement around cryptocurrencies continues to grow. In fact, the ecosystem saw its first unicorn on Tuesday in CoinDCX. The exchange, backed by Facebook co-founder Eduardo Severin’s B Capital Group, raised $90 million from investors including Coinbase Ventures, Polychain Capital, Block.one, and Jump Capital. Crypto exchange CoinDCX is now valued at $1.1 billion and is the country’s first crypto unicorn.
Also read: ‘Like a kitty party’: Blockchain expert explains tech behind cryptocurrency
Also read: India’s latest unicorn is cryptocurrency exchange CoinDCX
The government said that it will take all measures to eliminate the use of crypto-assets in funding illegitimate activities. “The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,” said Minister of State for Finance Pankaj Chaudhary in Rajya Sabha. He added that the government will explore the use of blockchain technology to usher in the digital economy.
A high-level inter-ministerial committee constituted under the Chairmanship of Secretary (Economic Affairs) to study issues related to virtual currencies and propose specific actions to be taken in the matter recommended that all private cryptocurrencies, except any cryptocurrency issued by the state, be prohibited in India.
The minister added that the Centre would take a decision on the IMC’s recommendations and it would be introduced in the parliament in due process.
This comes after RBI Governor Shaktikanta Das said recently that the apex bank has major concerns on cryptocurrencies traded in the market. "Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability. We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government," Das had said in May.
He had also said that the RBI is working on a digital version of a fiat currency, and is currently "assessing the financial stability implications of introducing such a Central Bank Digital Currency (CBDC)".
Despite the government and apex bank’s concerns, excitement around cryptocurrencies continues to grow. In fact, the ecosystem saw its first unicorn on Tuesday in CoinDCX. The exchange, backed by Facebook co-founder Eduardo Severin’s B Capital Group, raised $90 million from investors including Coinbase Ventures, Polychain Capital, Block.one, and Jump Capital. Crypto exchange CoinDCX is now valued at $1.1 billion and is the country’s first crypto unicorn.
Also read: ‘Like a kitty party’: Blockchain expert explains tech behind cryptocurrency
Also read: India’s latest unicorn is cryptocurrency exchange CoinDCX