CNBC-TV18 is reporting that India's research panel have concluded that virtual currencies should be deemed illegal in the country. The research panel was put together by the Indian government to draft norms related to virtual currencies. The panel have concluded their report and it has now been sent to the finance minister to make a decision.
The government panel concluded that all virtual currencies should be treated as illegal according to CNBC-TV18. The panel was put together to assist in drafting a consensus on digital assets for government to work with.
The panel has since concluded its research and believes that the Reserve Bank of India needs a new legal framework to put guidelines in place to ban cryptocurrencies. The panel was appointed in November to draft the norms for virtual currencies, led by Subhash Chandra Garg, secretary, department of economic affairs. The report has since been submitted to finance minister Arun Jaitley.
The panel concluded "The law should enlist punitive measures that the government and its investigative agencies can take in case it finds anyone or any entity trading or dealing/ holding it"
The ban of cryptocurrencies in India could be a massive blow to adoption within the country and a potential damper on market growth across the globe. The panel did suggest that a new sovereign backed virtual currency may be proposed considering global circumstances at a later stage.
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