The Indian Government has decided to drop the idea of banning cryptocurrencies and is looking to regulate cryptocurrencies instead.
The Government of India recently came to a decision of banning private Cryptocurrencies. This decision came after much discussion by the panel set by the Indian Government. The panel discussed the issues and came to a conclusion that it’s better to put a blanket ban on private Cryptocurrency.
However, as per the latest reports, the Government has backtracked on its decision to put a ban on private cryptocurrency. The government is now looking to regulate them instead.
The Note on The Bill
A note on the bill has been circulating, issued by the government. This note implies that the Authorities are looking to opt for regulation instead of putting a ban on private Cryptocurrencies. Furthermore, these Cryptocurrencies will be referred to as Crypto-Assets, as per the note.
The regulating body SEBI (Security and Exchange Board of India) is expected to act as the regulating body for these Crypto-Assets, Under them, Investors will be asked to transfer their Crypto-Assets to a SEBI regulated exchange. For this, SEBI will soon decide on a certain deadline.
As of now, there’s no news of a CBDC (Central Bank Digital Currency) by the Reserve Bank of India(RBI). However, speculations are that RBI will soon release an official statement on this issue.
Why to Regulate Cryptocurrencies?
The push to ban cryptocurrencies was partly by the concerns of various nefarious activities that a person can do using cryptocurrencies. To crack down issues such as Money laundering, tax evasion and terror funding the Prevention of Money Laundering Act (PMLA) along with some amendments will apply.
Honourable Finance Minister has made clear in her statements that they are monitoring the risk of cryptocurrency going into the wrong hands. However, the Authorities have decided to not put a ban on Crypto-related advertisements. The Finance Minister also added that they have no intention to recognise Bitcoin as a currency.
Worried investors can finally take a breath of relief after the decision of the Indian Government to regulate Cryptocurrencies. Hopefully, we might hear news about CBDC in the near future. If you liked this article, and want to read more like it, do visit our website.