Rajya Sabha Passes the Boilers Bill, 2024  ||  NCLAT: Authority Can’t Pass Adverse Remarks against RP Performing Duties as Per CoC’s Instruction  ||  Tel. HC: Teacher Eligibility Test Guidelines Framed to Ensure that Competent Persons are Recruited  ||  Ker. HC: Loss in Derivative Business Would be a Business Loss for Purposes of Section 72 of IT Act  ||  Rajasthan High Court: Suo-Motu Cognizance Taken Over Lack of Public Washrooms  ||  Gau. HC: Thorough Enquiry to be Conducted before Declaring a Monument as Ancient  ||  SC: Buttondar Knife to be Prohibited Only if Used for Manufacture, Sale or Possession for Sale or Tes  ||  Del. HC: Collection of Funds to Commit Offence in Future Not Money Laundering Under PMLA  ||  Rajya Sabha Passes Oilfields (Regulation and Development) Amendment Bill, 2024  ||  Lok Sabha passes Banking Laws (Amendment) Bill, 2024    

Central Government set to introduce Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 - (23 Nov 2021)

Commercial

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is to be presented in winter session of Parliament. The Bill seeks to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. Further, 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. A pro-active step is necessary to regulate digital currency.

A cryptocurrency is defined as a digital or virtual currency (VCs) secured by cryptography, a technique for secure communication. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. Blockchains are managed by a peer-to-peer network. VCs are not backed by Government fiat. These are also not legal tender. Hence, VCs are not currencies. These are also being described as ‘Coins’. There is however no physical attribute to these coins. Therefore, Virtual ‘Currencies’ are neither currencies nor coins. The Government or Reserve Bank of India has not authorised any VCs as a medium of exchange. Further, the Government or any other regulator in India has not given license to any agency for working as exchange or any other kind of intermediary for any VC.

There has been a phenomenal increase in recent times in the price of VCs including Bitcoin, in India and globally. The price of Bitcoin and other VCs therefore is entirely a matter of mere speculation resulting in spurt and volatility in their prices. Unregulated crypto-currency technique might give rise to illegal or subversive activities such as money laundering, smuggling, drug trafficking and terror financing. In the year 2019, Inter-Ministerial Committee in its report recommended banning of the cryptocurrencies in India and imposing fines and penalties for carrying on of any activities connected with cryptocurrencies in India. With regard to private cryptocurrencies, given the risks associated with them and volatility in their prices. The legal status of cryptocurrencies varies substantially from country to country and is still undefined.

Tags : CRYPTOCURRENCY   REGULATION   BILL  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved