The panic started yesterday with the news that the Indian government is getting ready to propse a bill against the cryptocurrency activities like – mine, buy, sell, deal in, issue, transfer, dispose of or use of cryptocurrency in any form. In short, India is planning for a complete ban on Crypto.
Now, hang on there. Can the Indian government ban decentralized currency? As a starter, we can say they can be regularized but a ban? Duh!!
Speaking more of the upcoming bill that is likely to be introduced in the winter parliament sessions that will commence on November 29th. The bill is named as Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. It is one of the 26 bills that will be introduced in the parliament.
Government’s Definition for CryptoCurrency
The bill has a new definition of cryptocurrency – Any information such as code, number, taken that promises a price will be considered Cryptocurrency, the sources said.
However, the important thing is that the government is also going to propose not to ban the legal use of technology used in cryptocurrency and there is no proposal for exemption of use of distributed ledger technology, according to the news sources.
Lok Sabha’s official website says that the bill aims “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
With that being said, there is a provision to give RBI the right to recognise foreign digital currency. According to this provision, RBI will have the right to discount the product under cryptocurrency technology or anything as such.