Indian Official Suggests Ban on ‘Private Crypto’ Prior to Supreme Court Decision
India’s secretary of Economic Affairs has suggested that the country’s Ministry of Finance execute a ban on “private cryptocurrencies,” as per the report issued by the Indian government press center Oct. 31.
The Financial Stability and Development Council (FSDC), led by India’s finance minister Arun Jaitley, conducted a meeting on the present economic and financial situation in India, attended by senior government and financial regulation officials.
Secretary of the Department of Economic Affairs, Shri Subhash Chandra Garg, allegedly proposed that the Council “devise an appropriate legal framework to ban the use of private cryptocurrencies in India,” as mentioned in press-release.
He further advised “encouraging” the implementation of distributed ledger technologies (DLT), such as blockchain, in the country.
Crypto Kanoon — a team of Indian lawyers that issues crypto and blockchain regulation news — posted a remark from the press-release in Twitter, questioning whether or not the potential ban would extend to owning digital currencies and dealing.
The Council’s discussion was directed shortly after a hearing in Supreme Court of India last week, which had set a limit for the Indian government to simplify its position on crypto. The Supreme Court appealed that officials present their stance by mid-November.
The Indian crypto industry has been working to uplift a partial ban for seven months now after the Reserve Bank of India (RBI) commanded that local banks cease operations with persons or legal entities that are comprised in the digital currency. As a response to the central bank’s move, several crypto businesses issued a complaint against the RBI in India’s Supreme Court. The latter endured upholding RBI’s ban, consequently delaying the hearings.