New Delhi: A Government committee has recommended the banning of cryptocurrencies in India, reported ANI on Monday. (Also read: Donald Trump Doesn’t Consider Cryptocurrency as Money)

An Inter-Ministerial Committee has, keeping an eye on the risks associated and the volatility in their prices, also recommended the imposition of fines and penalties for carrying any activities connected with cryptocurrencies in India.

The committee, with officials from the Ministry of Electronics and Information Technology, Reserve Bank of India, Securities and Exchange Board of India and Central Board of Direct Taxes, has developed a framework for regulating cryptocurrencies.

Reports say the committee has likened cryptocurrency to ponzi schemes and had also recommended that mining, holding, and disposing of virtual currencies should be made illegal, besides suggesting a jail term of ten years for anyone transacting in such coins, subject to clauses still not known.

Only last week, MoS for Finance Anurag Thakur had said in Parliament that while there was no separate law to deal with issues of cryptocurrency, the Inter-Ministerial Committee had worked on a draft for the same and had submitted its report.

Responding to a query by TRS Rajya Sabha MP Dharmapuri Srinivas in Parliament last week, Thakur had said, “The concerned departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws.”

“Police/courts take action on IPC offences. Further, in view of the risks and dangers associated with cryptocurrencies, government and RBI have been issuing
advisories, press releases and circulars to the public,” he had added.

The Supreme Court is also set to hear a case related to the ban on crypto-banking this week.