Government committee’s recommendation on cryptocurrencies is unrealistic

india investigating ban on cryptocurrency

In one of the world's hottest crypto markets, investors are brushing off latest push to prohibit digital currencies. Bitcoin logo. Many. The government is discussing with stakeholders whether cryptocurrencies should be completely banned or whether they should be allowed in a. Digital currencies on India's exchanges slumped amid heavy selling on Wednesday a day after the government announced a new bill that would. CRYPTO CURRENCY STRAGEGY

The federal Enforcement Directorate ED said that the probe involved transactions worth The investigation into WazirX - owned since by Binance, the world's largest digital currency exchange - began when the ED was looking into a money laundering case which involved Chinese owned illegal online betting applications, it said.

During the course of the investigation it was found out that the laundered proceeds of crime worth approximately million rupees had been converted into cryptocurrencies using the Binance platform, the ED said. WazirX said it is yet to receive any notice from the investigating agencies and is in compliance with all the applicable laws. Separately, other transactions worth Should we receive a formal communication or notice from the ED, we'll fully cooperate in the investigation," Shetty countered.

The government was set to present a bill to parliament by March that proposed a ban on cryptocurrencies, making trading and holding them illegal. The government will allow only certain cryptocurrencies to promote the underlying technology and its uses, according to a legislative agenda released late on Tuesday for the winter session of Parliament set to start this month.

The bill, if passed, would effectively ban citizens in India from transacting in most cryptocurrencies. A second crypto investor said the value of his portfolio had fallen to about 22, rupees from 34, rupees on Tuesday as a result of the heavy selling.

Several exchanges were facing deposit and withdrawal challenges due to the high volume of selling, said cryptocurrency traders. WazirX, one of India's largest cryptocurrency exchanges, said earlier on its official Twitter account that it was investigating reports that users were facing delays on its app and website.

It later said the issue had been resolved. There are an estimated 15 million to 20 million cryptocurrency investors in India, with total crypto holdings of around billion rupees, according to industry estimates.