Government committee’s recommendation on cryptocurrencies is unrealistic | The Indian Express

Government committee’s recommendation on cryptocurrencies is unrealistic | The Indian Express

Written by Akriti Gaur |Updated: July 31, 2019 11:03:32 am

The writer is senior resident fellow, Vidhi Centre for Legal Policy.

Government committee’s recommendation on cryptocurrencies is unrealistic

The draft law proposed by the committee raises significant questions of implementation and enforcement. Policymakers must first assess whether the police and traditional investigation tools are equipped to investigate crimes of this nature.

Cryptocurrencies enable some level of anonymity in transactions, operate on decentralised networks outside central banking systems, and are subject to fluctuation.

An inter-ministerial committee of the Indian government recently made a controversial recommendation to ban all transactional, storage and mining activities related to cryptocurrencies. If the suggestions are implemented, anyone who holds or trades in cryptocurrencies like Bitcoin and Ethereum in India can be sent to jail.