Breaking News: Bitcoin is Looking at a Potential Ban in India

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The future of bitcoin in the world’s sixth-largest economy India is looking bleaker.

The Subhash Garg-led interministerial committee today published a five-month-old report, wherein it recommended a full-fledged ban on cryptocurrencies. The panel said the central government should ban the holding and trading of digital assets like bitcoin. It also proposed a 10-year jail time to those who continue to engage in cryptocurrency-related activities.

“The Committee recommends that all private cryptocurrencies, except any cryptocurrency issued by the State, be banned in India,” the report read.

RBI’s Bitcoin Ban Sustains

The statement appeared a year after the Reserve Bank of India (RBI) barred banks from offering services to cryptocurrency firms. The order caused an uproar in the Indian cryptocurrency community. One of the affected companies took the RBI to the Supreme Court of India to prove their ruling was unconstitutional. The case went into a hibernation state in the coming months, facing one delay after another.

The RBI in one of the hearings stated that they were waiting for Subhash Garg, an Economic Affairs Secretary, to deliver his panel’s stance on cryptocurrencies before taking any further call. Down the road, the Indian central bank received support from the group. Their proposal specifically read:

“The Committee endorses the stand taken by the RBI to eliminate the interface of institutions regulated by the RBI from cryptocurrencies. The Committee also recommends that all exchanges, people, traders, and other financial system participants should be prohibited from dealing with cryptocurrencies.”

Ban not Finalized

Naimish Sanghvi, the owner of India-based cryptocurrency news portal CoinCrunch, clarified that cryptocurrencies remain lawful despite the Garg committee’s report. The journalist explained that the central government would have to table the proposal before the lawmakers in both the lower and upper house of the Indian parliament.

“They have prepared a bill that if passed can ban cryptocurrencies in India. But it has to go thru parliament process and may be changed too,” Sanghvi added. “It will take [a] few months.”

Meanwhile, noted bitcoin bull Anthony Pompliano also showed interest in flying to India and meet the lawmakers to handle the situation.

“We need to pay attention to what is happening in India around cryptocurrency regulation. I’m willing to fly to meet with lawmakers and regulators if someone can get me a meeting,” he said.

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