The government believes that a blanket ban on cryptocurrency is not possible. In such a situation, the possibilities of its regulation are being considered.
Trading will get legal recognition if regulated.
The government has decided to set up a panel in view of the way in which the world is moving ahead on cryptocurrency and its movement around it. This panel will submit its report regarding the regulation of cryptocurrency. Three trusted sources have given this information to the Economic Times. If it is regulated, then trading will get legal recognition, which will make it easier and safer for investors to invest in it.
Earlier, the government formed a panel in 2019. The panel was headed by former finance secretary Subhash Garg. He had clearly stated in his report that a blanket ban should be imposed on cryptocurrencies. Now the government believes that a blanket ban on cryptocurrency is not possible. The new committee will explore the possibility of whether blockchain technology can be used for technological upgradation. Apart from this, this committee will also give its advice on regulating crypto as a digital asset. Recently, the Reserve Bank also said that it will bring its digital currency. In such a situation, this committee will give its views on making this digital currency operational.
10 thousand crores investment in cryptocurrency
It has been said in the report that there is a view within the government that the advice of Subhash Garg’s blanket ban cannot be fully implemented. In this case, it is necessary to look at it from a new perspective. The Ministry of Finance has a direct eye on the increasing prevalence of cryptocurrency in the country. According to a report, about 10 thousand crore rupees have been invested in cryptocurrency in our country. About 1 crore investors have invested in cryptocurrency.
Opposition will also be included in this panel
Recently, Minister of State for Finance Anurag Thakur met people of the crypto and banking industry. Anurag Thakur’s name is also possible in the panel that the government is going to set up. Apart from this, the leaders of the opposition party will also be included in this panel. On separate occasions, Finance Ministers Nirmala Sitharaman and Anurag Thakur have made it clear that the government will not ban cryptocurrency altogether. In this case, the government will keep a standard approach.
Cryptocurrency bill will come in monsoon session
The government is going to bring the cryptocurrency and regulation of official digital currency bill 2021 regarding cryptocurrency. This bill was to be introduced in the budget session itself, but it was not introduced at the moment. It is believed that this bill will be introduced in the monsoon session. In this draft bill, the talk of Subhash Garg Committee has been included prominently. It is believed that in the present form, this bill will consider cryptocurrency trading and holding as a criminal activity.
Ban on cryptocurrency was lifted in 2020
In 2018, the Reserve Bank had issued an order banning all banks on cryptocurrency trade. Later this case reached the Supreme Court. The Supreme Court overturned the Reserve Bank’s decision in February 2020. The crypto entrepreneur and Internet industry association IAMAI approached the Supreme Court against the Reserve Bank’s order.
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