On July 23, the Government of India officially announced the report of the interdepartmental committee. The announcement was made the day before the country's supreme court had to hear petitions against a crypto-banking restriction.
On July 23rd, the Indian Supreme Court was to hear a cryptocurrency case. It was assumed that he would consider banking restrictions by the central bank, the Reserve Bank of India (RBI). However, the case was not considered by the court on Tuesday.
On Monday, the Ministry of Finance published the long-awaited crypto report of the interdepartmental committee chaired by the Minister of Economy Subhash Chandra Garg, who is also the Minister of Finance of the country.
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The ministry confirmed that the "committee report on the proposed concrete actions to be taken with regard to virtual currencies" was submitted to the government. It contains the draft "Prohibition of cryptocurrency and regulation of the bill on official digital currency, 2019."
The announcement by the Ministry of Finance states: "This report and the draft law will now be reviewed in consultation with all departments and regulatory bodies concerned, before the government makes a final decision."
The report highlights the positive aspect of DLT technology, commonly known as the blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details, and various potential applications, especially in financial services, such as credit tracking, collateral management, fraud detection, and management of claims in the insurance and reconciliation system in the securities market.
At the same time, the report proposes that the government considers the official digital currency instead of private virtual currencies or crypto-coins and tokens. But as for private cryptocurrencies, the committee noted the risks and volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details of their prices, which led to the fact that he recommended banning cryptocurrencies in India and imposed fines and penalties for taking any actions related to cryptocurrencies.
There will also be a Standing Committee to review the issues related to cryptocurrency.
A crypto-bill was officially published in India. Recall all banks in India are now ready to begin the implementation of the latest version of the Ripple decentralized financial instrument, xCurrent 4.0.
Editor: Yuliya Soroka