<p>An Indian government panel has recommended banning all private cryptocurrencies and a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies, which could signal the end of them in India.</p>.<p>The panel drew up a report and draft legislation, which will be examined by the government and regulators before they make a final decision, the government said in a statement on Monday.</p>.<p>The panel has, however, asked the government to consider the launch of an official government-backed digital currency in India, to function like banknotes, through the Reserve Bank of India.</p>.<p>Authorities in various countries are considering how to regulate cryptocurrencies, particularly after Facebook announced plans to launch one called Libra, because of risks to the financial system and consumer data.</p>.<p>The Indian government has issued repeated warnings against investing in digital currencies, saying these were like "Ponzi schemes" that offer unusually high returns to early investors.</p>.<p>The government panel, headed by finance secretary Subhash Chandra Garg, recommended a fine of up to 250 million rupees ($3.63 million) and imprisonment for up to 10 years for anyone who mines, generates, holds, sells, transfers or issues cryptocurrency.</p>.<p>"There is no underlying intrinsic value of these private cryptocurrencies," the panel said in its report submitted to the finance ministry.</p>.<p>Private digital currencies were created by non-sovereigns and lacked the attributes of currency, it said.</p>.<p>Industry officials expressed dismay and the hope the government would not introduce a ban.</p>.<p>"If the government decides to take such a drastic step then India will stand to lose out significantly on the technology front," said Sathvik Vishwanath, co-founder, Unocoin, an Indian virtual currency.</p>.<p>Nischal Shetty, CEO of WazirX, another Indian cryptocurrency exchange, said, they were still hopeful that the panel's report would not be accepted in its current form.</p>.<p>"Banning cryptocurrencies is a regressive step and no country or government should ban a new technology such as this."</p>.<p>The panel stated that block chain was good but cryptocurrencies were bad which was a contradiction and would not work, he said.</p>.<p>The panel was set up in 2017 by the then finance minister, Arun Jaitley, after reports of extensive money laundering with the use of digital currencies.</p>.<p>Tax authorities sent notices to tens of thousands of people dealing in cryptocurrencies after a nationwide survey showed more than $3.5 billion worth of transactions over a 17-month period.</p>
<p>An Indian government panel has recommended banning all private cryptocurrencies and a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies, which could signal the end of them in India.</p>.<p>The panel drew up a report and draft legislation, which will be examined by the government and regulators before they make a final decision, the government said in a statement on Monday.</p>.<p>The panel has, however, asked the government to consider the launch of an official government-backed digital currency in India, to function like banknotes, through the Reserve Bank of India.</p>.<p>Authorities in various countries are considering how to regulate cryptocurrencies, particularly after Facebook announced plans to launch one called Libra, because of risks to the financial system and consumer data.</p>.<p>The Indian government has issued repeated warnings against investing in digital currencies, saying these were like "Ponzi schemes" that offer unusually high returns to early investors.</p>.<p>The government panel, headed by finance secretary Subhash Chandra Garg, recommended a fine of up to 250 million rupees ($3.63 million) and imprisonment for up to 10 years for anyone who mines, generates, holds, sells, transfers or issues cryptocurrency.</p>.<p>"There is no underlying intrinsic value of these private cryptocurrencies," the panel said in its report submitted to the finance ministry.</p>.<p>Private digital currencies were created by non-sovereigns and lacked the attributes of currency, it said.</p>.<p>Industry officials expressed dismay and the hope the government would not introduce a ban.</p>.<p>"If the government decides to take such a drastic step then India will stand to lose out significantly on the technology front," said Sathvik Vishwanath, co-founder, Unocoin, an Indian virtual currency.</p>.<p>Nischal Shetty, CEO of WazirX, another Indian cryptocurrency exchange, said, they were still hopeful that the panel's report would not be accepted in its current form.</p>.<p>"Banning cryptocurrencies is a regressive step and no country or government should ban a new technology such as this."</p>.<p>The panel stated that block chain was good but cryptocurrencies were bad which was a contradiction and would not work, he said.</p>.<p>The panel was set up in 2017 by the then finance minister, Arun Jaitley, after reports of extensive money laundering with the use of digital currencies.</p>.<p>Tax authorities sent notices to tens of thousands of people dealing in cryptocurrencies after a nationwide survey showed more than $3.5 billion worth of transactions over a 17-month period.</p>