"Individuals and corporations will be fined for using digital money".
Individuals and corporations will be fined for using digital money
13.02.2021
A bill was passed stating that transactions in cryptocurrency would not be allowed in any way, including fines proposed by the draft law for any kind of violation by corporations, as well as individuals, corporations, participants in exchanges and other financial systems.
The government's draft bill on cryptocurrency has been cleared by Parliament. There is a possibility of banning the use of digital currency by Indian companies and individuals.
Control of the cryptocurrency and the official digital currency bill, which is expected to be introduced soon in the ongoing budget session in 2021. Representatives of the Reserve Bank of India, an inter-ministerial panel, felt that the cryptocurrencies that the private sector has are likely to pose a risk to the country's financial stability.
The bill, which proposes a ban on all private cryptocurrencies, would also lay the groundwork for an official digital currency linked to the RBI, which would be able to control it.
The centre's draft bill comes just days after billionaire Elon Musk announced plans to invest $ 1.5 billion in cryptocurrencies from carmaker Tesla Bitcoin's customers buying electric vehicles, taking digital money to new heights.
Both the country's central and central banks have been wary of digital currencies and advised banks and financial institutions not to transact. In the middle of the last two years, a government committee passed a law recommending that all private cryptocurrencies be banned, including up to 10 years in prison for digital currency transactions, but in 2020 the Supreme Court overturned that and allowed cryptocurrency transactions.