NEW DELHI, India—The Indian government plans to regulate cryptocurrency exchanges to keep track of transactions conducted there, a finance ministry official said.
A panel set by the government to look into issues relating to cryptocurrencies is expected to submit its report in the current fiscal year, ending on March 31, S.C. Garg, India’s economic affairs secretary, told Reuters.
India’s Union Finance Minister, Arun Jaitley, announced during a recent budget speech that virtual currencies are no legal tender. He also said that the proliferation of its use for illegitimate financing will be curbed. Following this, Bitcoin prices fell significantly.
Early in January Jaitley had emphasized that the government's position was consistent that such currencies were not legal tender. Jaitley had told the Parliament, "The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken," reported Reuters.
The minister also said that while repeated messages were being given that such currencies are not legal tender, more detailed steps would be taken once the report of the committee is submitted.