An inter-ministerial committee, constituted by the Indian Government has made a recommendation on the ban of cryptocurrency and stringent action should be taken on those who are involved in activities related to them in the country.
“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,” as per the report.
Subhash Chandra Garg, Secretary, Department of Economic Affairs, said private cryptocurrencies are of no real value.
The report further stated that several cryptocurrencies including Ethereum, Ripple, and Cardano have emerged, about 2,116 virtual currencies with a market capitalisation of USD 119.46 billion. It also suggested draft legislation.
The committee further said that the Distributed Ledger System (DLS) or Blockchain technology can have positive effects if deployed in financial services, as it is a medium that allows transactions without the need for intermediaries.
“The committee is very receptive and supportive of distributed ledger technologies and recommends its widespread use in delivering financial services. It also opens up the door for a possible official digital rupee,” Garg Tweeted.
The Committee to study issues related to virtual currencies was constituted by the Government on November 2, 2017, under the chairmanship of Subhash Chandra Garg, comprising of Ajay Prakash Sawhney (Secretary, Ministry of Electronics and Information Technology), Ajay Tyagi(Chairman, Securities and Exchange Board of India) and B.P.Kanungo (Deputy Governor, Reserve Bank of India).