What Happened - The Indian Government Firmly Wants to Eliminate the Use of Crypto? - Kakiforex.com - Financial Market Media No. 1 in the World What Happened - The Indian Government Firmly Wants to Eliminate the Use of Crypto? What Happened - The Indian Government Firmly Wants to Eliminate the Use of Crypto?
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August 12, 2021

What Happened - The Indian Government Firmly Wants to Eliminate the Use of Crypto?

 The Indian government on the day reported it would take stern action against crypto targeting the elimination of the use of crypto assets as part of the country’s financial system. However, the crypto issued by the government will not be included in this action.


Based on a recent report, the Indian government plans to stop the use of crypto assets for fear of crypto assets becoming a tool for criminals to fund their criminal operations. At the same time, the authorities also believe crypto assets should not be part of the national economy.


Pankaj Chaudhary, Minister of Finance commented, "The government does not consider crypto assets as 'legal tenders' and will take follow -up measures to eliminate the use of these crypto assets in financing illegal activities or as part of the payment system."



Legal tender here means the medium of payment recognized by the law of a country. The Inter -Ministerial Committee (IMC) formed under the Secretary -General, however, recommended that the government only ban ‘privacy’ crypto. At the same time, the government cannot ban CBDC crypto assets from being issued by the Central Bank of India.


Chaudhary noted that the highest authorities of Asian countries will consider the IMC’s proposal and announce their decision in Parliament. India, which has the second most populous population in the world, is starting to show firm action against crypto assets. Last March, the Indian government was considering a criminal act for those who hold, mine and trade crypto.


However, two months later, the proposal was reconsidered. At the same time proposing a new way to manage crypto as a digital asset rather than a currency.


Waima, the administration still does not have a clear stance on crypto assets, a large number of Indians show significant interest in crypto. The number of investors in the Indian crypto market has increased 200 times more than in 2020.