BY CNA team - November 1, 2018
India planning to ban “private cryptocurrencies”
India is considering more curbs on cryptocurrencies, with the latest being a plan to ban the use of “private cryptocurrencies”.
The move was announced in an Oct 31 press release by the country’s finance ministry, whose minister, Arun Jaitley, chairs the Financial Stability and Development Council (FSDC).
The FSDC, which groups together various ministries and regulators, had in a meeting deliberated on the issues and challenges surrounding cryptocurrencies.
The members were also briefed on the High-level Committee chaired by the economic affairs secretary on an appropriate legal framework to ban the use of private cryptocurrencies in the country but encourage the use of distributed ledger technology.
The Reserve Bank of India (RBI) banned financial institutions from dealing in fiat-to-crypto transactions with cryptocurrency exchanges in an announcement on April 6 and gave them three months to exit such transactions.
The ban came into effect on July 6 after an earlier petition to remove it failed.
Last week, the country’s supreme court which is hearing a class-action lawsuit brought by nine exchanges against the RBI, asked New Delhi to state its official stance on cryptocurrencies within two weeks.