It was proclaimed by the Union Finance Minister in Lok Sabha that Narendra Modi Government is still accepting the report of former finance secretary Subhash Chandra Garg, about banning cryptocurrency and authorising Reserve Bank’s digital currency despite of crypto. While the government is of the saying that whether new law should be brought to parliament would be decided by government only.
As a matter of fact as they are not regulated so their operations can’t be governed, but they can be bought and sell and traded by anyone. For this, The Finance Ministry said that Government is not considering Cryptocurrencies as legal coin and would put essential check on it being used as asset in financing or in payment system wrongly.
In addition to this, the Finance Ministry was of the view that all private cryptocurrencies except the one issued by state would be ban in India. The budget speech of 2018-2019 was all about government not considering cryptocurrency legal coin and would take necessary steps for eliminating the use of crypto assets in terms of payment of illegitimate activities. The government would also search various uses of blockchain technology so as to advertise digital economy.
RBI’s Interest In Launching It’s Digital Currency
RBI requires legal clarification from the government so as to launch its digital currency as launching would require legal support from the government. Where government is moving ahead with constitution of inter-ministerial committee (IMC) as on 2nd November, 2017, which is under chairmanship of economic affairs secretary, SEBI Chairman, also with secretary of Ministry of Electronics and Information and last but not the least RBI deputy governor for going through the issues concerning virtual Currencies and thereafter recommending specific action.
Report On Private Cryptocurrencies
The private cryptocurrencies are being banned due to various risks linked with them and volatility with their prices in India and so fine is imposed in addition to penalties so as to continue activities with cryptocurrencies in India.
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