The Indian government seems to be working with a new law that aims at banning the trade of cryptocurrency across the country. India’s perception of cryptocurrency has been ever-changing and wavering. So, the law doesn’t come as much of a startle.
Two years back, the Reserve Bank of India put an end to regulated services that supported crypto trade and transactions. Digital currencies have always faced a rough patch in the country. However, RBI’s strict guidelines were ruled out by the Supreme Court earlier this year.
The Indian government has been deeply involved with the creation of an ideal law that addresses the cryptocurrency concern. When implemented, such a law could turn detrimental for traders and investors in India. Consequently, the crypto industry could suffer quite a blow despite its excellent performance in the lockdown.To know more visit check out the official website here.
The Reserve Bank of India’s proposal was ruled out by the Supreme Court around March. Originally, the circular disallowed crypto-related services to banks and other financial institutions. However, there isn’t much clarity on the front yet and the haze is expected to clear eventually. Crypto analysts across the world have been waiting for the big move to happen. Further speculation will only be possible once a clear law is defined and its implications are understood. Thus, the much-anticipated order remains unclear and shrouded.
The Indian government has held a constant view for a long time. This view emphasizes the amount of change strict government orders can bring. With crypto transactions still happening across the world, it is believed that government guidelines could help change the situation in India. The illegal nature of the trade can only be defined through stringent government measures, officials believe. Ministerial debates and discussions related to the matter are on the rise and better clarity might be established soon. Everyone awaits the secrecy to change into something definitive on this front.
With the government having given approvals to over 1.45 lakh crore schemes that extend to more than ten sectors, this front calls for a real buzz. The law department has been in constant touch with the government. This is also aided by the constant presence of technology experts. Such gatherings are together helping create a framework for the laws that might emerge in connection with cryptocurrency.
Following the simple consultations within necessary departments, a law will possibly be presented before the entire cabinet to help receive opinions and approval. The pandemic has indeed posed several challenges. Thus, these issues await a resolution only when full-fledged sessions begin in the parliament.
The Reserve Bank of India prohibited trade and services in the crypto domain in a 2018 ruling. Through the rule, it warned entities to stay away from cryptocurrency transactions that involve Bitcoin, Ethereum, and other virtual currencies. However, all seemed to go haywire when the Supreme Court didn’t back the important Bank with its decision. Citizens were allowed to explore possibilities in the crypto domain according to the court’s judgment. While the court advocated the basic right to trade and easy cryptocurrency exchange, the perception of cryptocurrency remained in the gray for a long time.
Subhash Garg, the finance secretary in 2017, headed a panel put forward by the government. The panel aimed to dissect the basic nature and functions of cryptocurrencies. Following the discussion, a ban was imposed on all private digital currencies. However, it hinted towards the creation of an official virtual currency.
In its report, the panel proposed a ban on all forms of private virtual currencies. However, it also asked the RBI and the government to look at the possibility of official digital currency. As punishment for illegal traders and dealers, the panel settled on a fine of twenty-five crores and imprisonment that could go up to ten years.
Notices to alter crypto perceptions were also brought around. With the involvement of the tax department, several other questions around cryptocurrency also came up. The primary question around whether or not virtual currencies are treated as goods or services also followed. Whether taxes remain applicable to such cryptocurrencies is also another major concern on a national level.
With Bitcoin booming every day, the trade graph crosses millions of dollars every day. The lockdown only seems to have enhanced the volume of trade and the popularity of Bitcoin. With investors increasing in number and faith every day, virtual currencies seem to be at the peak of their lives. Undoubtedly, the pandemic has left suffering and thought all around, urging people to look out for lucrative domains such as of cryptocurrencies.