India – that has proposed a total ban on crypto yesterday – had planned to regulate digital currencies at first but the Reserve Bank of India (RBI) has forced the inter-ministerial cryptocurrency committee to prohibit the digital assets.
Regulation was the initial goal
According to a report by Business Standard, Economic Affairs Secretary and head of the inter-ministerial committee on cryptocurrencies and blockchain technology Subhash Chandra Garg was not in favor of banning crypto. On the contrary, he argued that regulating digital currencies “will likely lead to better results.”
Newsflash: Indian Regulators Officially Propose Total Cryptocurrency Ban https://t.co/LYKzNkOwBG
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At its first meeting at the end of 2017, the committee had come to a broad agreement that it would be “too difficult” to push out a ban on crypto, fearing that it could boost the rate of crypto-related illegal activities, the news outlet reported.
Instead of banning them, the committee sought to determine the nature of crypto. The lawmakers also wanted to answer the question of whether digital currencies had to be classified as commodities or financial assets.
But the committee’s views have radically changed in its second meeting that was held in February 2018. According to the news outlet, the regulators wanted to enforce a complete ban – which has happened yesterday – on cryptocurrencies after India’s Finance Minister Arun Jaitley presented the Union Budget for 2018-19.
According to Jaitley, the Indian government does not consider digital currencies as legal, stating that regulators “will take all measures to eliminate the use of these crypto-assets.”
The result: India has decided to ban crypto
Supporting Jaitley, RBI Deputy Governor BP Kanungo and Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra urged the committee to initiate a total ban on cryptocurrencies, arguing that…