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Cryptocurrencies are not banned in India. Not yet

  • India has not banned cryptocurrencies, but the respective draft bill is in works in the local parliament.
  • If the bill is adopted, dealing with digital money may lead to 10 years behind the bars.


Minister of State for Finance and Corporate Affairs Anurag Thakur said the government hadn't prohibited cryptocurrency in the country

Despite that the Indian government has been discussing a draft bill for prohibiting cryptocurrencies, there is no blanket ban on digital assets on the territory of the country as of yet, according to the Minister of State for Finance and Corporate Affairs Anurag Thakur. 

The Minister confirmed that cryptocurrencies were not prohibited in India while speaking in front of Rajya Sabha (the upper house of the Indian parliament).

"Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws," he said.

Meanwhile, the government and the central bank issued circulars and warnings to inform the public on risks related to cryptocurrencies. 

The Reserve Bank of India prohibited regulated companies from providing services to crypto-related business. The ban came into effect on July 6.

Currently, the parliament is discussing the bill that will ban holding, selling, or dealing in cryptocurrencies. The wrongdoers may be sentenced to 10 years in prison.
 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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