In a short period of time, it would be banned in the world’s largest democracy to own cryptocurrencies that do have authorization from the government.
Based on Moneycontrol, a report which is being made by a committee led by India’s Economic Affairs Secretary, Subhash Chandra Garg, might suggest alterations to the prior laws with the hope of prohibiting ownership of crypto assets that are not authorized by the government.
According to the reports from the Indian financial publication, the Subhash Garg committee is about to complete the phase of deliberations. Moreover, just suggesting legislative alterations and recommending a penalty for those holding unauthorized crypto assets, the panel will also state the disciplinary measures that will be used on those who break the law.
It is known that this decision comes from the government’s opinion that crypto assets which are uncontrolled should be kept out of the Indian financial ecosystem to stop them from being used in fraudulent activities.
The Subhash Garg-committee was established last year and is hoped to submit its report in December. In addition to the Economic Affairs Secretary, the membership of the committee stems from India’s central bank and the country’s securities markets lawmakers.
It will not come as a surprise if the Subhash Garg-panel report is used according to reports because the anti-cryptocurrency decision the different government agencies in Indian have taken. The Reserve Bank of India for instance, earlier in April banned financial institutions that the central bank of the world’s second-most populous country controls from providing services to businesses. Furthermore, the RBI prohibited these financial institutions from enabling their clients to buy cryptocurrencies.
“…with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs [Virtual Currencies],” read part of a statement issued by the RBI as reported by CCN. “Regulated entities which already provide such services shall exit the relationship within a specified time.”
Months after the crackdown, India remains to be affected by the ban. Last month, one of the biggest cryptocurrency exchanges in the world-sixth-largest economy by nominal GDP, Zebpay revealed its closing after it discovered it was not able to run without access to banking services.