Indian official recommends a ban on ‘private crypto’ prior to Supreme Court Decision

Lizzy Murray


According to a report published by the Indian Government Press Center on Oct. 31, Shri Subhash Chandra Garg, India’s secretary of Economic Affairs has suggested the country’s Ministry of Finance to force a ban on “private cryptocurrencies”.

A meeting regarding India’s current economic and financial situation held by the Financial Stability and Development Council (FSDC) and supervised by Arun Jaitley, India’s finance minister, brought senior government and financial regulation officials together for talks.

According to the official press release, the secretary of the Department of Economic Affairs, Shri Subhash Chandra Garg suggested that the Council “devise an appropriate legal framework to ban the use of private cryptocurrencies in India,”. He also advised “encouraging” the use of distributed ledger technologies (DLT) in India.

Crypto Kanoon, a group of Indian lawyers that publish news related to crypto and the blockchain, tweeted a quote from the press release wondering if the potential ban would also apply to holding digital currencies and trading.

The Council’s meeting took place right after last week’s Supreme Court of India’s hearing which had set a deadline for the Indian government to clarify its stance on crypto. The officials were requested by the Supreme Court to make their position public by mid-November.

Seven months ago the Reserve Bank of India (RBI) commanded that local banks terminate operations with individuals or legal entities that are involved in cryptocurrencies. Several crypto businesses reacted by filing complaints against the RBI in India’s Supreme Court which decided to maintain RBI’s ban and as a result, delay the hearings.