The ongoing Budget session of Parliament is expected to consider a bill that prohibits all private cryptocurrencies in India and provides for an official digital currency to be issued by the Reserve Bank of India.
As per the Lok Sabha schedule, The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is slated for introduction, consideration and passing.
The law is intended
- to create a facilitative framework for an official digital currency issued by the RBI
- to “prohibit all private cryptocurrencies in India”
But, certain exceptions will be permitted “to promote the underlying technology of cryptocurrency and its uses,” the Lok Sabha Bulletin said..
India’s central bank had in 2018 barred banks and other financial institutions from facilitating transactions involving cryptocurrencies. Cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020. A bench, headed by Justice Rohinton F Nariman, quashed the RBI circular on grounds of disproportionality.
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