Cryptocurrency Bill 2021: What Modi government is really planning to do
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 notes that there will no ban on Blockchain technology which serves as a ledger to record cryptocurrency deals.
The Narendra Modi government is all set to introduce the draft cryptocurrency Bill in Parliament during the ongoing Winter session. According to top sources, the government's Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 aims to limit certain aspects of cryptocurrency usage. The Bill will come before the Union Cabinet for approval next week before it is tabled in Parliament. Let us understand what the proposed Bill offers:
* The Bill notes that there will no ban on Blockchain technology which serves as a ledger to record cryptocurrency deals.
* The Bill has proposed to prohibit crypto to be used as a substitute for currency either for payment systems or for any sort of remittances.
* The proposes a general ban on private mining, holding, selling or transfer of cryptocurrency as a medium of exchange.
* The Bill creates a framework for RBI's digital currency which will be regulated by the Securities and Exchange Board of India
* The Bill aims to minimise financial risk by fencing the formal financial sector from crypto assets.
* The Bill seeks to impose penalties in case of violations by individuals or corporate bodies and term them as cognizable offences that could be non-bailable.
* The Bill exempts from restrictions those using the underlying crypto technology for research or for the purpose of an experiment.
Finance Minister Nirmala Sitharaman was on Friday quoted as saying that no country in the world had a one-point formula to regulate cryptocurrency. Earlier this week, the finance minister had informed Rajya Sabha that the government was yet to take a call on cryptocurrency advertisements. She noted that cryptocurrency advertisements do not come within the complete regulatory framework and that efforts were being made through the Reserve Bank of India and SEBI to create awareness.