Proposed bill on Cryptocurrencies may Prohibit Private Crypto but RBI may have Power to Give Exemption

Proposed bill on cryptocurrencies likely to have the provision to prohibit all private cryptocurrencies but Reserve Bank of India may get the power to give exemption and issuing a digital rupee, according the top sources.

According to the sources proposed bill — The Cryptocurrency and Regulation of official Digital Currency Bill, 2021-may have the provision under which “”No person shall mine, buy, generate, hold, sell, deal in, issue, transfer, dispose of or use cryptocurrency”.

Bill may define cryptocurrency as “any information or code or number or token, not being part of any official digital currency….It may be generated through cryptographic means or otherwise, providing a digital representation of value with the promise of having inherent value in any business activity which may involve risk of loss or profit…. It may functions as a store of value or unit which can be used as any financial transaction or investment “

Important part of bill could be a provision which may enable the holders of cryptocurrencies to exit within a certain time frame after which it will be consider as an offence.

Although there could be some provision which may cheer cryptocurrencies investors. Sources told, bill likely to proposed to encourage technology underlying any cryptocurrency for any lawful activity or distributed ledger technology. Bill may enable creation and regulation of digital rupee. RBI may get the power for recognition of a foreign digital currency in India.

All these provisions mentioned above could be the part of the proposed bill. But it does not mean that the bill will get parliament approval without any changes. If bill goes to any of parliament committee there could be significant changes.

According to the Lok Sabha website government will table the Cryptocurrency and Regulation of official Digital Currency Bill, 2021 in the winter session beginning from November 29. Loksabha website explains the purport of the bill as “To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”‘

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