Government Body Confirms Cryptocurrency Ban in India

The recent Bloomberg Quint report around the banning of cryptocurrencies received a lot of flak because it did not contain an official source. However, a new RTI filed by Coin Crunch India has revealed that the ban recommendation is for real! Responding to the RTI application, the Investor Education and Protection Fund (IEPF) Authority confirmed that the inter-departmental ministerial meeting indeed called for a complete ban on the sale, purchase and issuance of cryptocurrencies.

According to the information available, the meeting was held on January 24, 2019 between the IEPF Authority, Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC) and Ministry of Corporate Affairs (MCA) officials. In this meeting, they unanimously decided to ban cryptocurrencies. The IEPF Authority is the first government body to confirm the cryptocurrency ban.

Interestingly, the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) were not a part of these discussions. It is surprising to know that these two bodies were not involved in the discussions around cryptocurrency regulations, which was led by Subhash Chandra Garg.

The report also leaves a question mark on the holding of cryptocurrencies. The RTI response only recommends a ban on the ‘sale, purchase and issuance’ of cryptocurrencies. So, what will happen to the HODLers?

It is to be noted that this is just a recommendation and not an actual ban. Now, it is up to the government to decide whether to accept the recommendations of the committee. We urge the crypto community to take action and voice their concerns to the government across every channel possible.

Our Indian viewers can watch our analysis here:

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