Indian Government Review Bill That Proposed Ban on Cryptocurrencies

It has been reported that the Indian government and top industry stakeholders are revisiting provisions of the law that advocated a ban on cryptocurrency. The bill in question is dubbed the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 that was developed years back but never introduced during parliament’s budget session.

Bloomberg Quint recently cited a source familiar with the matter as suggesting that the government is working closely with regulators and other stakeholders to re-examine key provisions of the bill.

Supposedly the government is focusing on three core subjects which are:

  • Whether to impose a complete ban on cryptocurrency trading in India.
  • Whether cryptocurrencies can be regulated by authorities, instead of a blanket prohibition.
  • What kinds of activities can be permitted and what should be discouraged.

According to the anonymous source, all recommendations are being re-examined clause by clause, and discussions with regulators and technical specialists are currently underway.

History of this Bill

In 2017, the Indian government established a committee chaired by then-Economic Affairs Secretary Subhash Chandra Garg to explore virtual currency issues. The group suggested a complete prohibition on private cryptocurrencies in its final report, which was made public in January 2019.

Additionally, the same group proposed the establishment of an official digital currency issued by the Reserve Bank of India. Fast forward to 2018, the Supreme Court knocked down a Reserve Bank of India circular prohibiting regulated institutions such as banks from dealing with cryptocurrency-related firms and clients.

Since then, cryptocurrencies have boomed in the nation with new businesses emerging and the cryptocurrency community expanding at a rapid pace. The proposed legislation is being reviewed against this backdrop.

The goal is to update the existing Bill in light of the emerging scenario, the source stated.

The process is time-consuming since the central government is combing through the bill clause-by-clause, and therefore the bill is unlikely to be introduced in the upcoming Monsoon Session of the Parliament, this source added.

Additionally, the government has also considered the central bank’s recent warning on cryptocurrency. While the RBI stated that its 2018 circular is no longer applicable, it urged banks to do due diligence on cryptocurrency-related firms in accordance with “Know Your Customer” and “Anti-Money Laundering” regulations.

Following that, RBI Governor Shaktikanta Das stated that the central bank continues to have “major concerns” about cryptocurrencies.

Related posts:

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / /

India’s Crypto Ban May Extend to IPO Promoters

The extent of the anti-crypto sentiment in India seems to be deepening with initial public offerings (IPO) participants like promoters, investment banks, and lawyers likely to be barred from holding or investing in cryptocurrencies. Meanwhile, the threat of a blanket virtual currency ban continues to loom over one of the largest digital currency markets in the world.

SEBI May Ban IPO Promoters from Owning Cryptos

According to a report by the Economic Times on Monday (Feb. 22, 2021), IPO promoters in India who own cryptocurrencies may soon be prohibited from participating in public sales. While the Securities and Exchange Board of India (SEBI) has yet to issue any official communique in that regard, IPO stakeholders who spoke to ET say the securities regulator is already communicating its plans to investment bankers, securities lawyers, and other IPO participants.

For SEBI, the reason for the move is reportedly due to the fact that the securities regulator is not in favor of funds from IPO being moved into cryptocurrency investment positions. According to the ET report, SEBI does not want IPO participants to hold assets that could be deemed illegal in the country.

Commenting on the planned move to prohibit IPO promoters from crypto involvement, Mahesh Singhi, managing director of Singhi Advisors — an investment banking firm — remarked:

“In most situations currently, the money raised through IPO or even through other routes would come in the hands of promoters and investors, giving substantial liquidity in their hands and there is a fear that this could be used for speculation. The regulator had been giving indirect messages on this and in certain cases even other investors are cautious when it comes to promoters holding crypto assets, as these could be banned in India.”

Indeed, as previously reported by BTCManager, India is reportedly close to a blanket crypto ban with cryptocurrency holders to be given a grace period to sell-off their virtual currency assets. Earlier in February, the Indian government revealed that it was considering fast-tracking the controversial crypto bill via an ordinance process executive order.

Meanwhile, some IPO promoters are already pre-empting the crypto ban by issuing affidavits stating that they will sell their cryptocurrency holdings if the government follows through with the virtual currency ban. Apart from the threat of a blanket crypto ban, the country’s finance ministry also proposed a Bitcoin tax law back in December 2020.

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / / /

Jack Dorsey and Jay-Z Set Up Btrust Focused on India and Africa

Twitter CEO Jack Dorsey announced he would be giving a blind Bitcoin (BTC) development trust worth 500 BTC ($23.7 million) with Jay Z for teams working on the project in India and Africa. Btrust, the project’s name, will have no binding direction from them.

Btrust Aims to Promote Bitcoin

Dorsey’s move comes at a time when the Indian government is presenting a bill to ban all “private” cryptocurrencies. Also, the interest to fund Bitcoin development emerges as the cryptocurrency sees all-time highs this year.

Dorsey announced the Btrust’s formation on February 12 and invited three board members to initially control the blind trust.

Dorsey, 44, took to Twitter to announce the start of his Btrust bitcoin donation. He said that they created it as a blind trust, which they cannot undo without zero direction. He also provided a link to the Google board member application form. The form states that Btrust’s mission is to make bitcoin the internet currency.

India’s Crypto Regulation

Last month, the Indian government announced it would introduce cryptocurrency and official billing regulations for digital currencies (2021) at its recent budget meeting. The aim is to pave the way for a possible introduction of a CBDC by the country’s central bank when China is testing its digital yuan.

Experts believe the current bill can dispel ambiguity around digital money trading, which is not currently banned or passed in India. According to anonymous sources, the world’s second-most populous country will not immediately ban all cryptocurrencies and give consumers a grace period of 3 to 6 months to liquidate their holdings.

Moving into Blockchain

On February 10, Jack Dorsey donated $1 million to Coin Center in Washington, DC, which also received a $2 million donation from Grayscale. Dorsey’s continued passion for bitcoin has recently led him to create full bitcoin nodes from his Macbook, which means he can now inspect the bitcoin blockchain.

Dorsey is one of the most vocal Bitcoin permabulls. Last month, he explained why he got excited about cryptocurrency amid a Twitter thread banning former US President Donald Trump after the violence at Capitol Hall.

He wrote on his Twitter that he likes bitcoin so much because of the model it demonstrates: fundamental internet technologies that are not controlled or influenced by any individual or legal entity. It is what the internet wants, and it will become more and more over time.

Last October, payment company Dorsey’s Square purchased $50 million in Bitcoin to increase access to the decentralized currency via its Cash App mobile payment service. In a 2018 media interview, Dorsey also mentioned that he believes Bitcoin will one day become the world’s single currency.

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / / / / / / / / /
Bitcoin (BTC) $ 26,590.12 0.14%
Ethereum (ETH) $ 1,594.78 0.05%
Litecoin (LTC) $ 64.71 0.07%
Bitcoin Cash (BCH) $ 207.37 0.53%