Currency going Digital - Cryptocurrency!

Trading in Bitcoin and any other cryptocurrency in India does not seem to have a future. As Indian government is planning to propose a bill which will ban trading of cryptocurrency and penalize the people who trade or hold the currency.

Cryptocurrencies are any information, code, or token which has a digital representation of value and has utility in a business activity, or acts as a store of value, or a unit of account.

trading cryptocurrency across the globe

The trading of cryptocurrency across the globe has achieved new heights. Inefficient banking system, failed government policies and unfair distribution of IT returns have led to people trading in cryptocurrency as it saves time and makes less dependency on banks. However, over the years there are several risks identified related to cryptocurrencies, like potential losses for retail investors, volatility, misuse of technology which may further lead to money laundering leading to financial instability as the currency is not regulated by the central bank.

supreme court order

Post demonetization, Indian central bank banned the trading of cryptocurrencies as it led to series of fraud, however the cryptocurrency exchange filed a lawsuit in Supreme court of India asking to revoke the ban. The ban was lifted by Supreme court in March 2020 to bring the trading of cryptocurrency back in India.

The Reserve Bank of India (RBI), however raised its concern citing that trading in cryptocurrency would lead to risk of financial instability. With the latest update being India will propose a law banning cryptocurrencies and penalizing those who are trading or holding the currency.

If the bill has been passed, India would be the first country in the world with a stringent policy against trading and holding of such currency. Under this Bill, mining, holding, selling, issuing, transferring or use of such currency would be punishable with a fine or imprisonment of up to 10 years, or both.

Further, any person in possession of cryptocurrency must declare and dispose the same within 6 months from the implementation of the bill.

#WhitespaceGlobal #WSG #Cryptocurrency




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