Govt panel suggests ban on private cryptocurrencies

New Delhi, July 22: An inter-ministerial government committee has submitted its report suggesting the path that India should take regarding digital currencies in India.

The committee headed by finance secretary Subhash Chandra Garg has proposed a draft bill "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019", which has been placed in the public domain.

The recommendation comes a day after Minister of State for Finance Anurag Thakur denied that the government was considering a blanket ban on trading in cryptocurrencies.

"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," Thakur said while responding to questions in the Rajya Sabha.

The Reserve Bank of India had earlier prohibited banks and financial institutions from providing services in relation to cryptocurrencies.