Crypto Bill: Government’s proposed to ban private cryptocurrencies in India, allow RBI digital coin
Crypto Bill: The bill which was approved in the Lok Sabha on Monday, would prevent traders from indulging in contracts for difference. The government on Monday introduced the yet-to-be-registered model bill in the Lok Sabha to restrict payments made through crypto-currencies. The bill which was approved in the House will soon become law because finance minister Nirmala Sitharaman on Monday introduced the Bill in the Rajya Sabha too.
“India in the circumstances and at this historical juncture of the biggest financial crisis since the Great Depression is beginning to recognize the changes and the need to have a legal framework to legislate against certain products and practices like using such products and practices to hoodwink consumers,” the finance minister said during the debate on the bill.
She said that despite legislation being enacted in other countries in recent years and before those countries came to the war of words with China, it was not immediately implemented because countries like India with their judicial system are not so powerful to legislate “with force of law and force of authority”.
The government has, however, decided to make the proposed Bill the “Sovereign Digital Currency (Protection of Consumers) Bill, 2021”.
“The bill shall, to the extent practicable, prohibit or prevent contract by the person or personate (defined as one person or more persons) for exchange of money and exchanges of digital currency and against the account to account transfer of money and exchange of digital currency from place to place,” the bill reads.
“In such case a person would need to pay on-payment interest in the name of the merchant or other person in the form of equivalent or equal advances or provisions of trade-word credits, to the extent of the due on-payment interest (defined as one-third of the value),” it states.
“That subject shall extend the ban to those persons or personate dealing in digital currency, among whom any amount paid or to be paid as part of a contract or any document making any payment for making any payment would need to be converted and presented as the separate amount paid by another person or contract or to any person or personate concerned to the extent of the due on-payment interest”, the proposed law reads.
The government has also started preparations to enforce the proposed law, wherein the Information Technology minister, in a written reply, stated, “The extent to which such Currency is transferred from one person to another on account of supply or purchase of goods or services made for cash or purchase and sale of digital currency, at a lesser or a greater level, shall be determined by the person or personate (defined as the person or persons as defined in section 4), over whose account such person or personate shall hold such currency.
“Such basis or basis of the denomination of currency shall be determined in the public interest by the Central Government which shall exercise power given to it by law”, the new law reads.
Here we list some memes on the cryptocurrency bill:
“Cryptocurrency”, “Crypto Ban” and other related keywords trending on the internet, with thousands of people talking about the government’s move.
— Aditya Gona (@aditya_gona) November 23, 2021
— xyz (@Praneet53907245) November 24, 2021
— Harshad Bhalekar (@harshad_17) November 23, 2021
Nischal Shetty, the founder of cryptocurrency exchange platform WazirX, told that a “lot of panic selling ensued overnight”.
— Harsh Patel (@HarshPa69110919) November 24, 2021
what will happen I have crypto?
If you have any crypto in your account then you don’t have to get worried because the government of India will give at least three months for the crypto holders to sell their crypto.