Government to impose ban on all the forms of crypto currencies and virtual money

Private crypto currencies such as bitcoins are to be banned in India which is to be replaced by a framework of an official digital currency by the Central Bank as per the legislative agenda listed by the Government. The law will create a facilitate framework for creation of the digital currency by the RBI. There is a debate in the legislation on banning the crypto currencies but there will some certain allows to support the underlying technology of it and its uses.

In 2019, a panel was set up which recommended the banning of all the private crypto currencies with a prisonment upto 10 years and heavy fines too. The government backed bifocal framework was one of the recommendations done by the panel itself.

In April 2018, the RBI had strictly told all the financial institutions to break off all ties with the companies dealing in virtual currency such as bitcoin within a span of three months. However, in March 2020, India’s Supreme Court allowed the banks to manage the transactions regarding crypto currencies overturning a central bank ban that caused the industry a major blow.

Governments all over the world have been finding ways for regulating the crypto currencies but no major economy except India has taken the lead in placing a blanket ban on owing them even after the concern of consumer data and the possible threats to the financial system.