Download
1 / 6
60 likes | 65 Views
Cryptocurrency is gaining some serious popularity among investors. The most recent rally around Bitcoin pushed its value upwards of $40,000. Teslau2019s investment in Bitcoin and the proposed legislation by the Indian government has evoked mixed reactions.
E N D
Cryptocurrency Ban in India Will India to impose a blanket ban on cryptocurrencies?
The Indian Government recommends banning private crypto in favour of a state-sponsored one. A new law will be introduced to that effect in the ongoing Budget Session of the Parliament. But is it a wise move, given the immense gains to explore from cryptocurrency and India’s rising digital-savvy culture?
A Low-Down on Cryptocurrency Regulation in India India doesn't have a legislation for cryptocurrency regulation as of now. In 2018, the RBI had successfully prohibited crypto-exchanges after a series of scandals involving the crypto-usage in the months preceding. From that point forward, various booklets and warnings have been given, including the decoupling of crypto money trades from the financial framework. This prompted industry backlash and an appeal in the Supreme Court which suppressed the restrictions enforced.
Cryptocurrency Regulation in Different Countries A high-level Inter-Ministerial Panel has recommended prohibition on all cryptocurrencies except for those issued by the state. Consultations are still underway to introduce a new piece of legislation called The Cryptocurrency and Regulation of Official Digital Currency Bill 2021. But it is unclear whether the proposed ban would apply to cryptocurrencies and their use just a mode of payment or also as financial instruments that are used for investment. There is also a growing momentum for the idea of sovereign digital currencies like the Central Bank Digital Currency (CBDC). 66 central banks around the world are experimenting with the idea as we speak.
