Lok Sabha Question No. 2336 (UNSTARRED), answered on 2019-07-08
Subject: Crypto Currency Ban
Ministry: CORPORATE AFFAIRS
Asked by: S. Gnanathiraviam

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.  2336 ANSWERED ON MONDAY, THE 8 th  JULY, 2019/ ASHAD H A 17 , 194 (SAKA)

## CRYPTO CURRENCY BAN QUESTION

2336: SHRI GNANATHIRAVIAM S .

:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

1

कॉर्पोरे ट कार्य मंत्री

- (a) whether the Government has any proposal to ban Crypto currency in
- India;
- (b) if so, the details thereof; and
- (c) the details of such companies/legal entities along with the name of their proprietors?

## ANSWER

THE MINISTER FOR FINANCE

OF STATE AND CORPORATE AFFAIRS

वित्त एिं कॉर्पोरे ट कार्य मंत्रालर् में राज्य मंत्री

( ) ( श्री अनुराग व ंह ठाक ु र )

- (a)  to  (c): ( The  Government  has  not  recognised  crypto  currencies  as legal  tender ) .  The  issue  of  permitting  trading  in  crypto  currencies  is currently  under  examination  by  an  Inter-Ministerial  Committee.  The Government has constituted an Inter-Ministerial Committee (IMC) under the  Chairmanship  of  Secretary,  Department  of  Economic  Affairs  with representatives  from  concerned  Departments  to  study  all  aspects  of crypto currencies and crypto-assets including Bitcoin. The Committee, with  representation  from  MeitY,  RBI,  SEBI  and  CBDT  is  working  to develop  a  framework  for  regulating  crypto  currencies.  However,  in absence  of  a  globally  acceptable  solution  and  the  need  to  devise technically  feasible  solution,  the  Department  is  pursuing  the  matter with due caution. It is difficult to state a specific timeline to come up with  clear  recommendations.  The  Inter-Ministerial  Committee  (IMC) under the Chairmanship of Secretary, Department of Economic Affairs is examining all issues, including the pros and cons of the introduction of an  official  digital  currency  in  India.  No  decision  on  licensing  and authorising  any  entity  or  company  to  operate  such  schemes  or  deal with Bitcoins or any virtual currency has been made as yet.

SHRI ANURAG SINGH THAKUR

The  Government  and  the  RBI  has  been  warning  the  users  of crypto-currencies  of  the  dangers  posed  by  such  virtual  currencies. Government vide press release dated 29/12/2017 clarified that Virtual Currencies/Crypto Currencies are not legal tender and cautioned the members  of  public  against  the  Risks  involved  in  investing  Crypto Currencies. RBI vide press releases dated 24th Dec, 2013, 01st Feb, 2017 and 05th Dec, 2017 cautioned the public about risks and dangers with Virtual currencies including potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to by investing in Bitcoin and/or other Virtual currencies. RBI has also clarified that it has not given any license/authorization to any entity/company to operate such schemes or deal with Bitcoins or any virtual currency. Further, Department of Financial Services, MOF, has  informed  that  as  per  Reserve  Bank  of  India's  Notification  dated 06.04.2018 on 'Prohibition on dealing in Virtual Currencies', RBI has cautioned  users,  holders  and  traders  of  virtual  currencies,  including Bitcoins regarding various risks associated in dealing with such virtual currencies and RBI has directed that in view of the associated risks, with  immediate  effect,  entities  regulated  by  the  Reserve  Bank  shall not deal in VCs or provide services for facilitating any person or entity in  dealing  with  or  setting  VCs  and  that  regulated  entities  which already provide such services shall exit the relationship.  Accordingly, this ban came into force w.e.f. 6th July, 2018.

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