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Corporates or individuals to be punished for using Cryptocurrencies

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Vandana Mrigwani Follow

INDIA

Feb, 24 2021

Feb, 24 2021

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Indian companies and persons are doubtful to be permitted to pull a Tesla and stash extra cash in cryptocurrencies that have been on an eye-popping flow if a new bill planned by the government is cleared by parliament. 


Predictable to be presented in this legislative session, a draft bill suggests a comprehensive ban on all private cryptocurrencies - decentralized digital money that is valued for being undetectable and a buoyant estimate, sources have told NDTV. 


The bill will also lay the basis for an official digital currency - which are dissimilar as they can be regulated by a country's central bank - and its links to the Reserve Bank of India or RBI. 


Exchanges, persons, traders and other financial systems' members will not be permitted to deal with cryptocurrencies and penalties have been planned for any desecration by individuals as well as corporate bodies. 


The choice comes after an inter-ministerial committee counting the RBI felt that private cryptocurrencies will pose a risk to the financial stability of the country. 

Both the RBI and government have been warning about virtual currencies and have directed all banks and financial creations not to deal with them. 

Nearly 7 million Indians embrace cryptocurrencies worth over $1 billion and there has been an over 700 per cent growth in the last year, allowing to official estimates. 


In mid-2019, an Indian government panel suggested banning all private cryptocurrencies, with a jail term of up to 10 years and full fines for anyone dealing in digital currencies. 


The RBI had in April 2018 ordered financial institutions to halt off all ties with individuals or businesses commerce in virtual currency such as bitcoin within three months. 


Though, in March 2020, the Supreme Court permit banks to grip cryptocurrency transactions from exchanges and traders, upsetting a central bank ban had that dealt with the prosperous industry a major blow. 


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Vandana Mrigwani

CBW - External Analyst

INDIA

25 Feb 2021

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