Intergovernmental Commission of India for the strict regulation of cryptocurrency

In order to end speculation with virtual currencies, such as Bitcoin and other cryptocurrencies, the Indian Intergovernmental Commission recommends the development of a new law regulating this sphere. This became known to CNBC TV18 from its own sources.

“The group categorically stated that all such currencies should be considered illegal ,” said one of the unnamed interlocutors of the TV channel.

The commission’s experts suggested introducing a new regulatory and legal framework within the framework of the Reserve Bank of India (RBI) guidelines, which would clearly state that any type of operations with virtual currencies would be considered illegal, sources told CNBC TV18.

The Commission, which is designed to develop regulatory rules for cryptocurrency , was established in December last year. It was headed by the Secretary of the Ministry of Finance for Economic Affairs Subhash Chandra Garg. The group also included the Chairman of the Securities and Exchange Commission of India (SEBI), Ajay Tyagi, and the Deputy Governor of the Reserve Bank of India (RBI), BP Kanungo.

The report, which the Garga Commission presented to Finance Minister Arun Jaitley, states:

“The law should provide for punitive measures that the government and its investigating authorities can take if they find that someone or a legal entity is trading or has dealt / keeps it [virtual currencies].”

Regarding the possibility of India issuing its own digital currency, the experts of the group indicated that “a new virtual or cryptocurrency with sovereign support can be offered taking into account global circumstances; probably at a later stage. ”

In March of this year, Arun Jaitley, introducing the budget, said that the government would not recognize cryptocurrency as legal tender. RBI Executive Director Ganesh Kumar said last year that the central bank would not allow the free use of these assets in the country. In April of this year, RBI banned credit and financial institutions from servicing cryptocurrency companies, which, together with industry organizations, challenged the central bank’s decision in the Supreme Court.

The Garga Commission several times postponed the deadlines for submitting recommendations on the rules for the cryptocurrency market. In September, it was already reported that she could recommend banning cryptocurrency in India, which was not approved by the government.