Indian Finance Ministry has been informed by their internal panel to stop and discourage the use of bitcoins and other crypto currencies in India. The panel justifies this step in order to prevent people from potential frauds, drugs and stop money laundering. This very panel was formed by the Indian Finance Ministry back in April to suggest how to deal with digital currencies in India.
Before submitting the report, the panel took views from the public and various crypto currency startups in India. The Indian government has been informed to heavily discourage the people from buying crypto currencies and stop all advertisements by the startups that are selling bitcoin online in India.
That being said, even the panel knows that it is difficult to implement the ban on crypto currencies since there is no government regulation authority involved.
While the bitcoin trade volume is still quite low in India, the number of users has shot from below 1-lakh to over 10 lakh.
Government is now on the verge of banning bitcoin and other crypto currencies in India. If the ban is implemented, it will be a major blow to all the crypto startups.
What do you think about the finance ministry’s ban on crypto currencies?