Indian Government Discusses Cryptocurrency Ban

Economic Times on Friday, reported that undisclosed government officials revealed that India once again, is discussing plans to completely outlaw cryptocurrencies and initial coin offerings (ICOs). The idea was also supported by a number of government departments.

Government agencies confirmed to have supported the idea are the Central Boards of Direct and Indirect Taxes, Investor Education And Protection Fund Authority(IEPF) and the Department of Economic Affairs (DEA), all of which have citizens protection interests along lines of finance and fund usage.

Although the country’s central bank was previously considering launching a digital Rupee, the term “digital currencies” as contained in a draft bill titled “Banning of Cryptocurrencies and Regulations of Official Digital Currencies Bill 2019”, now circulating among some government departments may have impact on that policy.

The concerned government departments are expected to report their feedback in May and a final bill is also expected to follow.

India’s Ministry of Corporate Affairs believes that many cryptocurrencies are a “modified” ponzi scheme and should be classified fraud. Therefore, the ministry proposed that cryptocurrency-related law should be enacted as a part of the country’s anti money laundering policies.

According to the CEO of the investor Education and Protection Fund (IEPF) authority, Anurag Agarwal,

“When it comes to investor protection, the IEPFA has to take a stand against certain things. Against Ponzi schemes, we are taking a stand. We think that cryptocurrency is a Ponzi scheme and it should be banned.”

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Author: Dare Shonubi

Dáre Shonubi is a certified cryptocurrency expert and Blockchain journalist with an extensive experience in blockchain project marketing, media engagement, community management and cryptocurrency market analysis and research. An avid blockchain enthusiast with a view to support the blockchain innovation to optimum adoption and immeasurable development. Dare holds a diploma in the study of blockchain and cryptocurrency.

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