Yesterday i have heard in news that Indian government is going to ban cryptocurrency in India as The Union cabinet has approved a new law to ban unregulated deposits.
First Understand what is The Banning of Unregulated Deposit Schemes Bill, 2018
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given approval to introduce the banning of Unregulated Deposit Schemes Bill, 2018 in Parliament. The bill is aimed at tackling the menace of illicit deposit taking activities in the country. Companies/ institutions running such schemes exploit existing regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings.
Details:
The Banning of Unregulated Deposit Schemes Bill, 2018 will provide a comprehensive legislation to deal with the menace of illicit deposit schemes in the country through,
complete prohibition of unregulated deposit taking activity;
deterrent punishment for promoting or operating an unregulated deposit taking scheme;
stringent punishment for fraudulent default in repayment to depositors;
designation of a Competent Authority by the State Government to ensure repayment of deposits in the event of default by a deposit taking establishment;
powers and functions of the competent authority including the power to attach assets of a defaulting establishment;
designation of Courts to oversee repayment of depositors and to try offences under the Act; and
listing of Regulated Deposit Schemes in the Bill, with a clause enabling the Central Government to expand or prune the list.
Salient Features:
The Bill contains a substantive banning clause which bans Deposit Takers from promoting, operating, issuing advertisements or accepting deposits in any Unregulated Deposit Scheme. The principle is that the Bill would ban unregulated deposit taking activities altogether, by making them an offence ex-ante, rather than the existing legislative-cum-regulatory framework which only comes into effect ex-post with considerable time lags.
The Bill creates three different types of offences, namely, running of Unregulated Deposit Schemes, fraudulent default in Regulated Deposit Schemes, and wrongful inducement in relation to Unregulated Deposit Schemes.
The Bill provides for severe punishment and heavy pecuniary fines to act as deterrent.
The Bill has adequate provisions for disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally.
The Bill provides for attachment of properties/ assets by the Competent Authority, and subsequent realization of assets for repayment to depositors.
Clear-cut time lines have been provided for attachment of property and restitution to depositors.
The Bill enables creation of an online central database, for collection and sharing of information on deposit taking activities in the country.
The Bill defines "Deposit Taker" and "Deposit" comprehensively.
"Deposit Takers" include all possible entities (including individuals) receiving or soliciting deposits, except specific entities such as those incorporated by legislation.
"Deposit" is defined in such a manner that deposit takers are restricted from camouflaging public deposits as receipts, and at the same time not to curb or hinder acceptance of money by an establishment in the ordinary course of its business.
Being a comprehensive Union law, the Bill adopts best practices from State laws, while entrusting the primary responsibility of implementing the provisions of the legislation to the State Governments.
Conclusion :
The Banning of Unregulated Deposit Schemes Bill, 2018 have nothing to do with Cryptocurrency. This law will safeguard innocent investor to not fall for Ponzi schemes like chit funds etc.
Also as per the source the At the same time, the government has decided to keep cryptocurrency outside the ambit of the legislation, indicating that it will be dealt with as a payment tool.
Source : Times of India
So as of now there is no official news of BAN on Cryptocurrency in India i.e. Indian traders can still trade in crypto in India.
Trust and patience are the only things you need to make it Big in Crypto. Have patience, don't sell in FUD!!! HODL !!! CHEERS !!