Inter-ministerial committee on virtual currencies suggests banning of crypto.

[zaxifu]

The inter-ministerial committee set up by the government on virtual currencies has suggested banning of cryptocurrencies in India.

"As for private cryptocurrencies, given the risks associated with them and volatility in their prices, the group has recommended the banning of the cryptocurrencies in India and imposing fines and penalties for carrying on of any activities connected with cryptocurrencies in India," the Finance Ministry said in a press release on July 22.

The report also suggests punishment for holding and trading in cryptocurrencies. "Whoever directly or indirectly mines, generates, holds, sells, deals in, transfers, disposes of or issues cryptocurrency... shall be punishable with fine or with imprisonment which shall not be less than one year but which may extend up to ten years, or both," the report said.

The group has also proposed that the government should have an open mind on having an official digital currency.