Finance Minister Nirmala Sitharaman informed the Rajya Sabha on Tuesday that a high-level Inter Ministerial Committee (IMC) suggested a ban on all the private cryptocurrencies, except any virtual currencies issued by the state.
She said that the Central government will take the decision on the recommendations by the committee constituted under the Chairmanship of Secretary (Economic Affairs).
“The central government will take a decision on the recommendation of IMC and legislative proposal, if any would be introduced in the Parliament following the due process,” finance minister added.
The government had formed an Inter-Ministerial Committee which has given its report on issues related to virtual currencies. There was also a meeting of the Empowered Technology Group. The Committee of Secretaries chaired by the Cabinet Secretary has also given its report.
Reiterating the govt’s stance on Bitcoin, the finance minister said, “It was announced in the Budget Speech for 2018-19 that the government does not consider cryptocurrencies legal tender or coins and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.”
“The government will explore use of block chain technology proactively for ushering in digital economy,” it further said.
A cryptocurrency bill is being finalised and it will be sent to cabinet soon, minister of state for finance Anurag Singh Thakur said earlier. “Regulatory bodies like RBI and Sebi etc also don’t have a legal framework to directly regulate cryptocurrencies as they are neither currencies nor assets or securities or commodities issued by an identifiable user. The existing laws are inadequate to deal with the subject. The government had formed an inter ministerial committee and the committee has given a report. Post that there was a meeting of the empowered technology group which happened earlier. The committee of secretaries which was chaired by the cabinet secretary has also its given their report. The bill is being finalised and will be sent to the cabinet soon. So we will be bringing the bill soon,” Thakur said.
