The Indian Interdepartmental Committee (IMC), created to study and develop legislation for bitcoin and other cryptocurrencies, stated that the government should ban virtual currencies.
An excerpt from the report reads as follows:
“As for private cryptocurrencies, given the risks associated with them and volatility in their prices, the Group has recommended the banning of the cryptocurrencies in India and imposing fines and penalties for carrying on of any activities connected with cryptocurrencies in India.”
At the same time, the committee advised the government not to abandon the idea of creating a national cryptocurrency, and also urged the creation of a standing committee on cryptocurrencies aimed at monitoring new trends in the industry.
In addition to the report, the committee presented the draft bill. Government officials and financial regulators are likely to use this bill as a basis for developing rules that may include a general ban on bitcoins. In addition, the recommendation on fines for cryptocurrency activities raises concerns among interested people in the country: earlier this year there were rumoured reports of a law that would stipulate imprisonment for people dealing with bitcoins and other cryptocurrencies.
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