On October 30, at a meeting of the Financial Stability and Development Council (FSDC), the issue of virtual currencies arose. “The Council discussed the issues and concerns of crypto assets and concluded that a complete ban on the use of cryptocurrencies should be considered,” the Information Agency of India (PIB) said in a press release.
According to information platform Crypto Kanoon, the word “use” means that the purchase, sale, transactions and conversion of cryptocurrencies into rupees may be completely prohibited, but not the ownership of crypto assets itself.
The council meeting was attended by representatives of the banking sector and market regulators, Finance Minister Arun Jaitley and Secretary of the Department of Economic Affairs Subhash Chandra Garg, who heads the working group on cryptocurrency issues. It was he who expressed the attitude of Indian regulators towards digital business most clearly in August: “We do not consider cryptocurrencies as money in principle.”
The group also includes the deputy chairman of the Reserve Bank of India (RBI) and the chairman of the SEC of India. The council was created in December 2017 and was supposed to develop rules for regulating digital currencies.
The draft regulations were supposed to be prepared by July, but the deadline was subsequently extended. Apparently, Indian regulators have now decided to deal with the problem regulation is the shortest way - just ban everything.
Earlier this year RBI banned banks from cooperating with companies involved in cryptocurrency activities. This had a catastrophic impact on the digital currency ecosystem, trading volumes decreased tenfold, and the country's largest exchange completely
According to qz.com
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