Government to take decision on IMC’s report on cryptocurrencies, may present a legislative proposal: MoS for Finance

According to data from crypto exchanges, there are approximately 1.5 crore Indians who have invested in cryptocurrencies holding worth Rs 15,000 crore (Image: Shutterstock)

Minister of State for Finance (MoS Finance) Pankaj Chaudhary on August 2 said that the government would take a decision on the recommendations of the Inter-Ministerial Committee (IMC) on crytocurrencies and the legislative proposal, if any, would be introduced in the Parliament following the due process.

A High-Level Inter-Ministerial Committee (IMC) in its report had recommended that all private cryptocurrencies, except any cryptocurrency issued by the State, be prohibited in India.

IMC was constituted under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies .

He further said, "It was announced in the Budget Speech for 2018-19 that “the Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. The Government will explore use of block chain technology proactively for ushering in digital economy."

On July 27, Finance Minister Nirmala Sitharaman informed Rajya Sabha that the government does not collect information on the number of cryptocurrency exchanges and investors in India.

The minister said this in a tabled reply to questions on cryptocurrency by Rajya Sabha MP and former Bihar deputy chief minister Sushil Kumar Modi.

According to data from crypto exchanges, there are approximately 1.5 crore Indians who have invested in cryptocurrencies holding worth Rs 15,000 crore, with more and more people starting to invest. There are 350 startups that operate in the blockchain and crypto space.