Published: Sun, January 31, 2021
Economy | By

Is India Going To Ban Bitcoin?

Is India Going To Ban Bitcoin?

This will allow the digital currency to work as a legal tender. The bill also seeks to ban all sorts of private cryptocurrencies and allow only the ones that are required for promotion of underlying technology.

The Indian house of parliament today introduced a bill titled, "The cryptocurrency and Regulation of Official Digital Currency Bill, 2021" and it will be discussed in Lok Sabha house of Indian parliament. "The Bill also seeks to prohibit all private crypto-currencies in India; however, it allows for certain exceptions to promote the underlying technology of crypto-currency and its uses" said the objective of the Bill in the papers placed before the bulletins. "In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks".

Barring few use-cases such as for study/research purposes, the draft bill 2019 proposed a huge penalty for any who directly or indirectly mines, generates, holds, sells, deals in, transfers, disposes of, or issues cryptocurrency.

The country has WazirX, BuyUcoin, CoinDCX, and CoinSwitch Kuber, among others as leading cryptocurrency platforms that would be directly impacted by the restrictions planned by the government. Over $1 Billion+ crypto assets owned by Indians. The panel has, however, asked the government to consider the launch of an official government-backed digital currency in India, to function like bank notes, through the Reserve Bank of India. Under Section 7 of the bill, this will be punishable with fine or with imprisonment which shall not be less than one year but which may extend up to ten years, or both.

The move is likely to end ambiguity on cryptocurrency which is neither banned nor legalised in India.

For the past six-seven years, including India, many countries were looking for the introduction of the digital currencies, when Bitcoin-like crypto-currencies started flooding in the world and their trades became proffered in many sectors.

These private cryptocurrencies were banned earlier as well, but the Supreme Court later overturned the previous ban in 2018.

The discussion of the bill will include two key topics.

The scary part is about "banning private cryptocurrency with some exceptions ".

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