Finance Ministry

Inter-Ministerial Committee report on Virtual Currencies and Draft Bill Banning Cryptocurrency

Inter-Ministerial Committee on Virtual Currencies submits its Report along with Draft Bill ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’
 
The Government had constituted an Inter-Ministerial Committee (IMC) on 2.11.2017 under the Chairmanship of Secy (EA), with Secy (MeiTY), Chairman (SEBI) and Dy. Governor, RBI as Members, to study the issues related to virtual currencies and propose specific action to be taken in this matter. The Group’s report, along with a Draft Bill has been received by the Government. This Report and Draft Bill will now be examined in consultation with all the concerned Departments and Regulatory Authorities, before the Government takes a final decision.
 
In the Report, the Group has highlighted the positive aspect of distributed-ledger technology (DLT) and suggested various applications, especially in financial services, for use of DLT in India. The DLT-based systems can be used by banks and other financial firms for processes such as loan-issuance tracking, collateral management, fraud detection and claims management in insurance, and reconciliation systems in the securities market.
 
As for private cryptocurrencies, given the risks associated with them and volatility in their prices, the Group has recommended banning of the cryptocurrencies in India and imposing fines and penalties for carrying on of any activities connected with cryptocurrencies in India.
 
The Group has also proposed that the Government keeps an open mind on official digital currency.
 
As virtual currencies and its underlying technology are still evolving, the Group has proposed that the Government may establish a Standing Committee to revisit the issues addressed in the Report as and when required.
 
copy of the Report of the Group, along with the Draft Bill ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’ has been placed on the website of the Department of Economic Affairs today.

addition u/s 68 addition u/s 69A ca misconduct cash deposit in bank cbdt circular CBDT Instruction cbdt notification cbdt order cbdt press release cgst circular cgst notification cit revision 263 concealment penalty condonation of delay covid-19 custom circular demonetisation due date extension e-way bill faq GST circular GST Council Meeting gst faq gstn advisory GSTR-3B GST rates IBBI ibc income tax prosecution itat ITAT Delhi mca circular MCA notification order u/s 119 penalty 271(1)(c) penalty u/s 271(1)(c) Press Release reasons recorded reopening 148 Reopening us 147 Search & Seizure sebi circular unexplained cash credits validity of notice u/s 148 Withdrawal of 2000 500 Bank Notes

Share

Recent Posts

  • GST

High Court denied pre-arrest bail to accused of fake ITC utilisation

High Court denied pre-arrest bail to accused of fake ITC utilisation on possibility of misusing the concession of pre arrest…

45 minutes ago
  • Income Tax

ITR was not non est for no e-verification when AO took cognizance of returned income

Return could not be said to be non est for non e-verification when AO had been taken due cognizance of…

22 hours ago
  • Income Tax

Section 43CB & ICDS-III is applicable to contractors not to real estate developers

Section 43CB read with ICDS-III is applicable to contractors and not real estate developers - ITAT In a recent judgment,…

1 day ago
  • Income Tax

Expenses of ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act.

Expenses incurred on ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act – ITAT Delhi In a…

2 days ago
  • Income Tax

Compliance history of supplier can’t be used to invalidate genuine business transactions of buyer

Compliance history of supplier could not be used to invalidate the genuine business transactions of the buyer especially when the…

2 days ago
  • Income Tax

Reassessment quashed as AO issued notice u/s 148 instead of 153C as reopening was based on search

Reassessment quashed as AO issued u/s 148 instead of 153C as reopening was based on incriminating material found during search…

2 days ago