Worldwide, cryptocurrencies such as Bitcoin, Litecoin and Ethereum have grown rapidly and have given investors tremendous profits in these digital currencies. Due to these people of India have also invested heavily in cryptocurrency. But now the central government is coming up with a law to ban cryptocurrency, which can be introduced in Parliament in the budget session itself. The proposed bill to ban cryptocurrency provides that Indian companies and common people will not be able to collect assets in the form of digital currency.
However, before the ban on private cryptocurrency like bitcoin, the central government will give its investors a chance to get out of it, but to legalize the crypto assets, investors will have to pay a heavy penalty. The Digital Currency Bill, 2021 (Cryptocurrency and Regulation of Official Digital Currency Bill 2021) provides for the withdrawal of funds invested from cryptocurrencies by paying heavy fines. The bill has been listed in Parliament.
Bill not yet finalized
The Digital Currency Bill, 2021 is yet to be finalized. According to the news published in Mint, sources in the Ministry of Finance said that it is not yet decided how many penalties will have to be paid to exit this bill crypto assets and legalize it. The purpose of the digital currency bill is to create a legal path for the creation of official digital currency or government cryptocurrency to be issued by RBI. The Lok Sabha Secretariat also said in a bulletin that an exercise is underway to ban all private cryptocurrencies in India. However, this law will allow some exceptions to promote the technology of cryptocurrency and its use.
Keeping cryptocurrency will be a punishable offence
The holding, sale, issuance, mining, transfer and use of private cryptocurrency in the Digital Currency Bill, 2021, can be made a punishable offense. This may include heavy fines, imprisonment or both. According to media reports, the government has decided to ban all private cryptocurrencies and all types of exchanges related to it. Private exchanges running for the trade of cryptocurrencies will also come under this law. Sumit Gupta, the founder of the cryptocurrency exchange CoinDCX, said that the Government of India should talk to all parties related to it before implementing the proposed law and also incorporate our suggestion into the law.
$ 2.4 million investment in 2020
According to data from analyst firm Venture Intelligence, India has invested $ 24 million in cryptocurrency in the year 2020. It was just 5 million dollars a year earlier. Cryptocurrency firms operating in the country have also done good business even during the period of lockdown. Crypto trading in India has become a formal sector in the last few years with the opening of various crypto exchanges. Earlier, Union Finance Minister Nirmala Sitharaman also said in response to a question in the Rajya Sabha that a high-powered committee has suggested banning all private cryptocurrencies in India. The committee says that only the digital currency issued by the government should be approved in India.