Cover Story - Private cryptocurrencies may be banned in India as Government not in favour; bill likely to be introduced in winter session of Parliament
Cover Story - Private cryptocurrencies may be banned in India as Government not in favour; bill likely to be introduced in winter session of Parliament
India could soon introduce a bill on cryptocurrency in Parliament and the bill is likely to be brought during the winters session of the parliament. The government is in favour of banning private cryptocurrency in the country.
It was being said earlier that the Government could find a middle path. The Reserve Bank of India (RBI) and the government have shown a strict stance on the cryptocurrency issue including that Bitcoin. However, there has been some leeway in their view to this digital currency.
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There were news of the likelihood of government regulating the cryptocurrency, the bill on which was expected to come during the winter session of parliament. The government has been speaking to various stakeholders and had even assured them of some step. It had also asked them not to put unnecessary advertisements on this.
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Ahead of the winter session, government will discussing on bills that it will bring during the session had also mentioned about the bill on cryptocurrency, Zee Business’ Brajesh Kumar said in his report.
The view of the government is to put a ban on all the private cryptocurrencies and that would be spelt out in the bill, he added. He said that the bill is expected to have in detail the roadmap of how the official cryptocurrency that will be issued by the RBI, will be brought.
The RBI is expected to bring its own Central Bank Digital Currency (CBDC), he further said. He said that many existing laws will have to be amended, to bring the laws on cryptocurrency.
However, the Government has indicated that it will not put restrictions on the technology as it can be used in many other areas.
The Prime Minister’s Office (PMO) had recently held a meeting on the issue. It was in view of the advertisement that have come for an asset that has no backing or underlying assets. It is purely on the basis of sentiments.
This was also one of the concerns of the RBI. The stance taken by the banking regulator was quite strong and the government has took its views in conisideration.
It is still a long process as the bill would first go to the parliament, debated, then passed and then notified.
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