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Indian Government Departments Ponders Over Draft Bill Proposing Total Cryptocurrency Ban

India | Government | Cryptocurrency Regulations | Bill | Cryptocurrency Ban

The tussle between the Indian regulators and cryptocurrency intensifies as the government is reportedly going through inter-ministerial consultations for a draft bill that will purportedly ban cryptocurrencies, as reported by a local financial publication Economic Times on April 26.

A government official aware of the matter told the publishing, that a draft titled “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″, has been making the rounds and relevant government departments are pondering over the decision.

Last year, the government formed a panel to research and study on the matter. Lead by finance secretary Subhash Chandra Garg the committee including representatives of the Department of Economic Affairs (DEA), Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC) and the Investor Education and Protection Fund Authority (IEPFA).

According to the meeting reviewed by ET, the committed asserts ” that already there is a lot of delay in taking action against cryptocurrency. There is an urgent need to ban sale purchase and issuance of cryptocurrency.”

As per a  government official who did not wish to be named, A number of government departments have been endorsing a similar idea of a complete ban on the “sale, purchase and issuance of all types of cryptocurrency.

Reportedly, the final law based on the feedback of all departments involved will be proposed to the next government that takes charge after elections at the end of May.

The committee further pointed out that a ban on the cryptocurrencies can also be achieved under the Prevention of Money Laundering Act (PMLA), as they can be easily employed as a means of money laundering.

In its feedback, the ministry of corporate affairs stated to the department of economic affairs that the sale purchase and issuance of cryptocurrencies such as Bitcoin, Ethereum & Cashcoin etc. could be performed by individuals and companies under false inducements of massive returns.

Being neither transparent nor do they fall within any regulated legal framework, the scope of Ponzi schemes is quite widespread. As per the feedback, these schemes were being used to “defraud gullible investors”.

Further, the ministry recommended that since the bill will take time to be implemented, individuals using cryptocurrencies to defraud investors and launder money shall be prosecuted under the Prevention of Money laundering Act till a detailed bill is brought.

Read more:Two Years in the making, this Blockchain is finally Ready for Mass-Utility

Image Source – Stock Photo Secrets

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