India Has No Seperate Law To Ban Cryptocurrency – Indian Minister Anurag Thakur

News, Regulation | July 22, 2019 By:

Anurag Thakur, India’s Minister of State for Finance and Corporate Affairs, said that the government has not prohibited the use of cryptocurrencies in India.

Thakur, who was responding to a query by Telangana Rashtra Samithi Rajya Sabha MP Dharmapuri Srinivas in Parliament, said that there is no separate law for cryptocurrencies in the country, but all concerned government departments and law enforcement agencies, such as the Reserve Bank of India (RBI), enforcement directorate and income tax authorities take action as per the relevant existing laws.

“Similarly, police/courts take action on IPC offences,” Thakur said. “Further, in view of the risks and dangers associated with cryptocurrencies, government and RBI have been issuing advisories, press releases and circulars to the public.”

Earlier this year, it was reported that the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ draft was being circulated to relevant government departments. The bill, which was submitted by the inter-ministerial committee (IMC) led by the Indian Department of Economic Affairs secretary Subhash Chandra Garg, seeks to completely ban the use of cryptocurrencies as a medium of exchange, store of value, and/or unit of account in the country. In addition to making it completely illegal, the bill makes holding of cryptocurrencies a non-bailable offense.

According to Thakur, the IMC is examining all issues including the pros and cons of the introduction of an official digital currency in India, saying that “the department is pursuing the matter with due caution.”

“It is difficult to state a specific timeline to come up with clear recommendations,” Thakur said.