Centre think over ban on 'private cryptocurrencies' through new Bill: What this could mean for digital currency buyers
CBW -External Analyst
Feb, 03 2021
The latest Bill will positively have India's cryptocurrency buyers on tenterhooks, as the fortune of their crypto-wallets now hangs in the balance.
Regardless of several central banks everywhere in the world rising more agreeable to cryptocurrencies and the requests of their primary Blockchain technology, India's assignation with the crypto field has been on-again, off-again.
The effectiveness of the Bill is also important as it reaches on the heels of a notable year for Bitcoin. Cryptocurrency traders may also find certain confidence in Article 20(1) of the Indian Constitution which forbids the government from housing reflective criminal charges.
Parliament will reflect a new Bill?– The Cryptocurrency and Guideline of Official Digital Currency Bill, 2021 – in the present Budget Session that will ban all 'private cryptocurrencies' while paving the track for a sovereign digital currency to be delivered by the Reserve Bank of India.
At a distance from banning cryptocurrency interchange on presently unregulated exchanges, the Bill also aims to “generate a facilitative framework for an official currency” but will comprise precise exceptions “to endorse the original technology of cryptocurrency and its practices,” allowing a Lok Sabha bulletin.
The ban stimulated panic amongst the many fledgeling cryptocurrency trading platforms in India compelling numerous to shutter. Yet, a group of these exchanges and traders were interested against the suggestion at the Supreme Court via a lawsuit, and in March 2020, the summit court lined in their favour.
The verdict increased optimism among cryptocurrency supporters but did not amount to any substantial change from a strategy standpoint. As such, cryptocurrency players in India presently function within a policy vacuum but that power all changes, and to their loss, if the Bill listed in Parliament is passed.
CBW - External Analyst