Recently Central Government have notified the parliament in banning of private crypto currencies. This regulatory move came after the Supreme Court lifted the ban on usage of virtual currencies put forth by our Central Bank.
In regard to that, Central Government have proposed a regulatory protocol. Except Digital Currencies launched by Government all other private crypto currencies to be banned for usage. This is to regulate the illegal usage of crypto currencies and also to avert the cross border terrorism funding using digital currencies.
The draft proposal “Banning of Crypto currency & Regulation of Official Digital Currency Bill, 2019" has been prepared by RBI and awaiting implementation. The panel analysed the cause includes Finance Ministry department of Economic Affairs, Ministry of Information Technology and Central Bank.
One of the major critic is from various industries operating abroad, says that it is a backward move and the government should think to regulate instead of banning the currencies altogether. Recently the COVID pandemic took a positive approach over usage of crypto currencies so many are concerned regarding the proposal.
By: S Indhu