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Crypto Ban in India ‘Difficult to Implement’, Says Ashima Goyal of India’s Monetary Policy Committee: Report

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A member of India’s Monetary Policy Committee (MPC) has given relief to Indian crypto investors from rumors that the crypto sector may be completely banned in the country. Ashima Goyal recently said in an interview with Press Trust of India that it is difficult to implement a complete ban on crypto-related activities. According to Goyal, India will not legalize any cryptocurrency as legal tender, mainly because it is likely to be misused for illegal activities. Cryptocurrencies are not regulated by any financial body in the world and allow massive cross-border transactions in an instant and untraceable manner.

Goyal in his interview denied calling crypto coins “currency”, saying that they are neither sufficient nor acceptable as a payment option in India.

The Economist believes that these decentralized digital assets should be called “crypto tokens” and that these tokens should be regulated by India’s governing authorities, as reported by the Press Trust of India.

Earlier in November, India listed a crypto-centric agenda for discussion in the winter session of Parliament. A “cryptocurrency bill” had to be expanded for approval, which reportedly called for a ban on all private cryptocurrencies in the country.

According to the bill’s summary, the Indian government seeks to impose a general ban on all activities “mining, producing, holding, selling, (or) dealing by any person” in digital currencies as a “medium of exchange, store of value and”. was planning. a unit of account”.

Violation of the rules was listed as a non-bailable offence.

However, the bill did not reach Parliament and instead it was first submitted to Prime Minister Narendra Modi’s cabinet for approval.

There has been no word about the document since.

“Only large transactions can be allowed, from investors who are aware of the risks,” Goyal reportedly said, elaborating on how cryptocurrencies might work in the country.

Earlier this week, the Reserve Bank of India (RBI) requested the government to completely ban crypto activities in the country. Excessive price volatility as well as the possibility of misuse emerged as the RBI’s top concerns.

The chaos around regulating cryptocurrencies in India comes at a time when the sector is witnessing rapid expansion into the world’s second most populous country.

Several studies by research firms like Watcher Guru and BrokerChoice have shown that India has the largest number of crypto investors in the world. This number is being told around 100 crores.

Meanwhile, the year 2021 turned out to be a milestone for the crypto sector.

Last year, the global crypto market capitalization soared to $3 trillion (approximately Rs 2,15,66,720 crore) and created a new all-time high.

In September last year, El Salvador legalized bitcoin as legal tender in the country.

However, in the same month, China imposed a complete ban on all crypto activities, making it a punishable offence.

India’s stand on the crypto space is still awaited.


Interested in cryptocurrency? We discuss all things Orbital with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to constitute financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.

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