Govt May Launch Bill To Control, Regulate And Ban Cryptocurrencies

In the Budget session of the Parliament, the government might come up with the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. The bill aims at establishing a facilitative framework for generating an official digital currency that is issued by the country's central bank, the Reserve Bank of India (RBI).

Govt May Launch Bill To Control, Regulate And Ban Cryptocurrencies

Cryptocurrencies are digital tokens that make use of encryption techniques for administering the generation of their units and verifying the transfer of funds and operate independent of a central bank.

"The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of crytptocurrency and its uses", said the Lok Sabha bulletin. The Supreme Court last year permitted financial institutions and banks to offer cryptocurrency-related services by suspending the RBI's 2018 circular that had then disallowed them.

A three-judge bench, led by Justice R F Nariman, said the Reserve Bank of India (RBI) circular is liable to be set aside on the ground of "proportionality". "Accordingly, the writ petitions are allowed and the circular dated April 6, 2018 is set aside," said the bench, also comprising justices Aniruddha Bose and V Ramasubramanian.

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