In India Govt to finalise crypto currency report in two months: Economic Affairs Secy

The finance minister in his budget speech said that we will not allow cryptocurrency in illegitimate activity. Is there a possibility that a list of legitimate activity will come?

The expression now that we are using right now is crypto asset. We don't like the word currency. Nobody has the authority to issue currency or coins. So, these are misnomers, wrong expressions. We prepared to treat them as crypto assets. Once we recognise that these are assets and not allowed as currency or coins, then if it is used in making payments of illegal activities, is our next line of worry. We will do everything to see that the use of crypto assets into these kind of activities are eliminated.

And then you go on to identify what else should be eliminated, regulated or controlled. The group under my chairmanship (on crypto assets) is in the last stages of deliberation. We will come out with the government’s approach in the entire spectrum. We hope to finish first line of work in the next two months.

Is there a possibility that crypto assets can be regulated and become part of the legitimate financial system?

Crypto assets cannot move into the financial system as such. You can't prevent everyone from what they consider valuable. If somebody may call them irrational, consider that cryptoasset is valuable for them, then it is fine. But, people should not fall prey to such assets without understanding. It is government's duty to see that. That's why we issued an advisory. Crypto assets should not cause harm to gullible people.