The central government bill on cryptocurrency regulation is likely to pave the way for a “facilitating framework for distributed ledger technology” but aims to ban certain aspects of the use of cryptocurrency assets such as “currency substitutes or as payment systems or for remittances” .
Official sources have confirmed the details of the government’s bill on cryptocurrencies Business today. The crypto law is expected to be submitted to the cabinet for approval next week and then introduced to parliament.
According to the report, the bill proposes a “general ban on all activities by individuals in mining, generating, owning, selling, trading, issuing, transferring, alienating or using cryptocurrencies as a medium of exchange, store of value and entity” Invoice.”
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However, anyone using crypto-related technology for any lawful activity will be exempted from the proposed restrictions because “the underlying technology of crypto-assets is still evolving and has many uses”.
On the other hand, the draft law highlights that the underlying technology or process that involves cryptocurrencies for experimentation and research cannot be used to pay or receive payments.
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According to the report, the bill is also intended to “minimize the risks to financial stability by adequately shielding the formal financial sector from crypto assets.” Sources told Business Today that these are some of the clauses that are part of the government’s proposed framework to regulate the developing space of cryptocurrencies.
CLASSIFICATION OF PENALTIES, SEBI REGULATION
The bill also provides penalties for individuals and companies for violating regulations. The offenses could also be classified as recognizable and not surrogate.
According to the sources, the bill suggests that crypto assets be regulated as a commodity by the Securities and Exchange Board of India (Sebi).
They added that the size of crypto assets in India with around 15 million investors is estimated at around 45,000 billion rupees. The regulation is being drafted to take investor safety into account and to prevent tax evasion and money laundering.
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“The challenge posed by the crypto ecosystem includes risks to the operational and financial integrity of crypto assets and insufficient disclosure for some stable coins,” says the draft law. In addition, the bill also proposes a framework to ban advertising and the dissemination of misinformation to the public.
Last but not least, the draft law aims to create a framework for the official digital currency to be issued by the Reserve Bank of India (RBI).
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