On Tuesday, October 30, the Indian Financial Stability Board (FSDC) began a discussion about the future of private crypto-assets in India, as reported at pib.nic.in/newsite.
After a long period of uncertain relationship to the regulation of the crypto-sphere, the Ministry of Finance of India and the Council on Financial Stability began an active discussion about a possible ban on the use of "private" cryptocurrency assets. At the 19th meeting of FSDC, under the leadership of the Minister of Finance of India, Arun Jaitley, a working group was established to analyze the cryptocurrency "difficulties and challenges".
Initially, it was assumed that the interdepartmental council would be engaged in legal developments to regulate the crypto-market, but ultimately a proposal was made to consider banning "the use of private cryptocurrencies".
"The FSDC working group took note of the information on strengthening cybersecurity in the financial sector (...) The board discussed cryptocurrency issues and problems and was informed about the discussions in the High Level Committee, chaired by the secretary (economic), to develop an appropriate legal framework to ban private cryptocurrencies in India, as well as encouraging the use of distributed book technology, as announced in budget 2018-1919." – Press Office, Government of India, Ministry of Finance
The full definition of "private" crypto-assets is not disclosed in the application. But as it was noted, "use" – will spread to exchange, trade and settlement with virtual money.
It is worth recalling that in July-September of this year, the Reserve Bank of India banned financial companies (which are under state control) to cooperate and use crypto. After the ban came into force, many Indian crypto-platforms changed their location and moved to foreign markets.
Editor: Yuliya Soroka