A special announcement from the Union Cabinet suggested regulating private cryptocurrency rather than banning it, for the upcoming cryptocurrency bill on Thursday. The note said that it won’t be recognized as a legal currency in India and is termed as Cryptoasset.
As per the NDTV report, the Cryptoasset will work on the existing platforms and it will be regulated by SEBI (Securities and Exchange Board of India). However, a deadline date will be given to people owning those crypto assets to declare them and bring them under the exchange platform that is regulated by the SEBI.
On the other side, cryptocurrency by the RBI is not clubbed with the new crypto bill. The RBI will regulate all the problems of cryptocurrency.
The announcement by SEBI stated that anyone found violating the exchange process will be penalised with criminal imprisonment for 1.5 years. Previously FM Nirmala Sitharaman said that the Finance Ministry received a proposal from the RBI to include the digital currency under ‘bank note’.
The Finance Minister said on Tuesday that the ministry and the government are working on a new bill related to cryptocurrency which will be presented in the ongoing Winter Session of Parliament after the Union Cabinet approves it. The Winter Session is scheduled till December 23.
The proposal name is ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’. It is included in the Lok Sabha Bulletin Part – II of the winter session.
The bill is meant to create a proper framework for the digital currency that will be issued by the RBI, the Bulletin read. It will also prevent private cryptocurrencies in India. However, the bill may permit certain exceptions to promote digital currency and its uses.
Cryptocurrency has become massively popular in the past year and as the whole digital currency is private, there is no regulation of the government. Cryptocurrency can be used for a variety of things that works online and the cost of the same has jumped exponentially. The prices of cryptocurrency were never higher than how it was this year. However, with government regulation, the prices and demand for the digital currency may go down.
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