cryptocurrency ban in india India will propose legislation banning cryptocurrencies, imposing fines on anyone who trades in the country or even owns such digital assets, a senior government official told Reuters that could strike at the millions of investors that are piling up in the red-hot condition. class resource. It is reported that the Indian government will introduce a new law to regulate cryptocurrencies in the country in February.
The draft, which was rolled out earlier this year, bans private cryptocurrencies and allows the Reserve Bank of India to issue a central bank digital currency (CBDC). However, with a growing number of cryptocurrency investors in the country and a thriving ecosystem of blockchain applications, a complete ban on cryptocurrency may not be a smart move.
Cryptocurrency Ban in india
The Cryptocurrency Law and the Official Digital Currency Law Regulation 2021 “aim to ban all private cryptocurrencies in India, but allow some exceptions to promote the underlying technology and its use.”
The bill aims to create an enabling environment for the creation of an official digital currency to be issued by the Reserve Bank of India, the statement said. The move is in line with the government’s January agenda calling for a ban on private virtual currencies like bitcoin while laying the groundwork for an official digital currency.
Last year, the government planned to ban all cryptocurrencies and even planned to introduce a bill into this year’s budget.
Days after the Prime Minister held a meeting on cryptocurrencies, the first parliamentary group on November 16 discussed the broad outlines of crypto finance and concluded that it needed to be regulated.
According to sources, on Monday, the Parliamentary Standing Committee on Finance discussed the pros and cons of cryptocurrency funding with various stakeholders, and several members spoke out in favor of regulating cryptocurrency exchanges rather than banning such currencies altogether
. This happened a week after the first parliamentary roundtable on the wide contours of cryptocurrency, which reached a consensus that cryptocurrency cannot be stopped, but must be regulated. The government is expected to unveil the cryptocurrency and regulation of the official digital currency law of 2021 at the parliament’s winter session, which runs from November 29 to December 23.
The government is expected to introduce a bill banning private cryptocurrencies and lay the foundation for the Reserve Bank of India (RBI) to issue official digital currencies during the winter parliamentary meeting beginning on November 29.
India will ban the use of cryptocurrency to make payments, but it will allow and regulate cryptocurrency trading as an asset, the Economic Times reports, citing government sources. India is set to ban all but a few private cryptocurrencies after the government announced a new financial regulation law on Tuesday.
Mumbai (AFP) – The Indian government will introduce a bill to ban private cryptocurrencies and create the basis for a central bank-backed digital currency, Parliament said in a shock statement on Tuesday.
The bill “aims to ban all private cryptocurrencies in India,” Lok Sabha said, and passed after Prime Minister Narendra Modi warned last week that Bitcoin poses a danger to the younger generation and could “spoil our youth” if it turns out »In the wrong position. Hands.
Expressing concerns about the safety of investors’ money when investing and transactions in cryptocurrency, the government indicated on November 15 that it may not ban digital currency, but may soon introduce regulation.
Against this backdrop, Prime Minister Narendra Modi held a cryptocurrency meeting with senior officials on Saturday, and there are signs that strong regulation could be put in place to address the issue.
Sources said that the proposed bill will focus on investment protection, as cryptocurrencies are categorized as complex asset classes. India is looking at a sweet spot for cryptocurrencies as it finalizes virtual asset legislation that will be presented at the upcoming winter parliamentary session.
cryptocurrency ban in india – Cryptocurrency bill in India latest news 2021
According to a government source, a hard line on a complete ban on cryptocurrencies is not possible in light of the large investment in such instruments by Indians, and these unregulated virtual currencies are unlikely to be allowed as legal tender.
Indian lawmakers have been discussing the risks of cryptocurrency trading for several quarters and are experimenting with a central government-backed digital currency.
The Reserve Bank of India and the Securities and Exchange Commission of India have raised concerns about the unregulated growth of cryptocurrencies in India given vulnerable retail investors.
Cryptocurrencies have been under the scrutiny of Indian regulators since they entered the local market in 2013. The Reserve Bank of India again raised concerns last month, citing what it believes posed risks to financial stability posed by cryptocurrencies.
The position of the banking regulator was quite tough, and the government took into account her point of view. The cryptocurrency industry responded positively to the question of regulation.
Some industry organizations such as Nasscom, IAMAI and IndiaTech, as well as cryptocurrency exchanges in the country, require cryptocurrency products to be regulated rather than banned. Several CEOs and bank executives have expressed concerns about cryptocurrencies.
RBI Governor Shaktikanta Das repeated them from time to time, stating that there are “much deeper problems” with virtual currencies that could threaten the country’s economic and financial stability.
Since the Supreme Court overturned the Reserve Bank of India (RBI) ban on cryptocurrency transactions on March 4, 2020, the latter, having withdrawn its 2018 circular, recommended due diligence on customers for virtual currency (VC) transactions.
In April 2008, RBI ordered all fintech companies to store Indian financial data in India, but due to the lack of regulation and charter of transactions for VA exchanges, this is not enforced. In addition, there is no control over private cryptocurrency exchanges that allow you to buy and sell cryptocurrencies.
First of all, crypto tokens that are investments or disguised as currencies, and crypto exchanges that promote these investments are not technologies. They are just products based on a common concept blockchain, even if they use different hashing technologies for cryptography.
…Digital investment products developed using encryption technology must be approved by regulatory agencies: Securities and Exchange Commission of India (SEBI), Insurance Regulatory Development Authority of India (IRDAI) or others.
They must first overcome the basic rules of guarantees, counterparty guarantees, and risk disclosure. The government needs to go beyond this regulatory monster and ban crypto assets and companies that sell them.
If the ban becomes law, India will become the first major economy to make the storage of cryptocurrencies illegal. On Tuesday evening, the Indian government said the bill would allow “with a few exceptions” to advance the technology behind the cryptocurrency and its applications.
The bill, titled The 2021 Cryptocurrency and Official Digital Currency Regulation Bill, has been listed to create an enabling environment for the creation of an official digital currency to be issued by the Reserve Bank of India.
Sources also said that the Bill will ban the use of all private cryptocurrencies, with the exception of a few, for the purpose of using the underlying blockchain technology. The bill, one of the world’s toughest cryptocurrency policies, criminalizes the ownership, issuance, production, trading and transfer of cryptocurrency, said an official who knows firsthand about the plan.
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