According to the government, a legal framework is more important than circulars from the Reserve Bank of India and for the same, India is thinking of a law to ban cryptocurrency. In this regard, the Finance Ministry has moved a note for inter-ministerial consultations.
When the supreme court gave its decision, to quash a circular provided by RBI, that was preventing banks to provide services in support of cryptocurrency, led into moving the note for inter-ministerial consultations.
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After deliberation and consultation, the note will be sent to the cabinet and further to the parliament. In July 2019, a draft law was prepared by a high-level government panel, which provided a ban on all forms of private cryptocurrency and suggested a fine of upto Rs 25 crores and imprisonment of up to 10 years for anyone dealing with the same.
The Supreme Court lifted a de facto ban on trading in bitcoin. The draft controls in the July 2019 proposition were excessively brutal, said one of them. Such a proposed enactment would make it “unlawful to hold, sell, issue, move, mine or use cryptographic forms of money and, whenever went in the current structure, would totally annihilate the crypto-business in India,” said Amit Maheshwari, accomplice, AKM Global.
The board, headed by previous fund secretary Subhash Garg, had, in its report, supported a prohibition on all types of private virtual monetary standards, however, it asked the RBI and the legislature to take a gander at the presentation of an authority virtual cash.
The draft law arranged by the panel said any immediate or aberrant utilization of digital currency will be culpable with a fine or detainment, which will not be short of one year, yet may stretch out as long as 10 years.