We haven’t banned cryptocurrency: Government of India

Unocoin and Zebpay: two examples of India-based cryptocurrency wallets

The government of India has reiterated that it has not banned cryptocurrency and does not recognise it as legal tender.

The statement comes after Dharmapuri Srinivas, Telangana Rashtra Samithi, Rajya Sabha MP from Nizamabad asked that whether the government has bann the cryptocurrency.

“Whether the government has taken note about the prevalence of cryptocurrency in the country and if any action is being taken against the persons who are responsible for running the cryptocurrency in the market?,” Srinivas asked the government.

Anurag Thakur, minister of state for finance, responding to Srinivas, said,”No. Presently, there is no separate law for dealing with issues relating to cryptocurrencies.”

Thakur added and went on to say that all concerned government departments and law enforcement agencies, such as RBI, enforcement directorate and income tax authorities take action as per the relevant existing laws.

So, the Indian government has not banned cryptocurrency in India.

“Further, in view of the risks and dangers associated with cryptocurrencies, government and RBI have been issuing advisories, press releases and circulars to the public,” Thakur further added.

Recently, on July 16, Thakur stated in the Rajya Sabha, “Taking note of the issue (cryptocurrency trading in India), the government has constituted an inter-ministerial committee (IMC) under the chairmanship of Secretary (Economic Affairs). The IMC has submitted the report to the government.”

Thakur had further asserted that the IMC with representation from MeitY, RBI, SEBI and CBDT is still working to develop a framework for regulating cryptocurrencies.

Thakur added that the IMC is examining all issues including the pros and cons of the introduction of an official digital currency in India, saying that “the department is pursuing the matter with due caution.”

However, in his July 16 statement, Thakur said the IMC has already submitted its report with the recommendations. This indicates that a report was submitted between July 8 and July 16.


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