Govt set up a committee on Crypto currencies

  Govt of India set up a committee to look into ways of regulating cryptocurrencies such as Bitcoin,Ethurieum and other alt coins.

The panel has been asked to suggest measures for dealing with virtual currencies including issues relating to consumer protection and money laundering, the finance ministry said in a release.

In December, Rajya Sabha member Rajeev Chandrasekhar wrote to finance minister, Arun Jaitley, and RBI Governor, Urjit Patel, on the proliferation of Bitcoins and its use to launder black money.

“There are already reports of a surge in domestic bitcoin trade and moving of black economy to the Dark Internet. The surveillance and policing requirements are challenging and I suspect the government and RBI are ill-equipped, currently, to deal with this. I am drawing your attention to the need to be ahead of the curve on this rather than behind and so the RBI must develop the capabilities on this urgently.” he wrote.

To examine the existing framework, the department of economic affairs under the finance ministry has constituted an inter-disciplinary committee chaired by special secretary (economic affairs) and representatives from DEA, department of financial services, department of revenue (CBDT), home ministry, ministry of electronics and information technology, RBI, NITI Aayog and State Bank of India.

The Committee will take stock of the present status of Virtual Currencies both in India and globally, examine the existing global regulatory and legal structures governing virtual currencies, suggest measures for dealing with such virtual currencies including issues relating to consumer protection and money laundering.

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