New Delhi:

Cryptocurrency Bill Draft: Preparations are underway to bring a cryptocurrency bill. The government has prepared a draft on investment in cryptocurrencies in India, regulation and punishment related to it. There is information that such a proposal can be made in the crypto bill draft that a person and organization who break the laws implemented by the Government of India on crypto finance in India can be fined up to 20 crores and 1.5 years in jail. Prime Minister Narendra Modi has expressed that the government's stance can remain strict on cryptocurrencies. He said at an event on Friday that emerging technology like cryptocurrencies should be used to strengthen democracy. At the same time, according to a report last week, PM Modi is going to take a decision soon for the regulatory framework of cryptocurrencies. However, there is confusion about this.Policy-makers say that digital currency outside regulation is a threat to the economy and financial stability.

10 important things

  • The government is preparing a draft on investment in cryptocurrencies in India, regulation and punishment related to it.

    It is known that a proposal can be made in the crypto bill draft that a person and organization who break the laws implemented by the Government of India on crypto finance in India can be fined up to 20 crores and 1.5 years in jail.

  • Instead of the earlier talk of banning private cryptocurrencies, the government can bring all private crypto under regulation in this bill.

  • Finance Minister Nirmala Sitharaman had informed in the Lok Sabha that the government is working on a new draft, that is, the old draft was made and is being amended.

    After this it was revealed that the government will replace the word 'cryptocurrency' with 'crypto asset' in the draft. 

  • Sources had also informed that the government will not give the status of legal tender to crypto, nor will it be given the status of currency.

    These will be viewed as assets, such as property, gold, or bonds, etc.

    The bill will aim to reduce financial risk by keeping other formal financial sectors separate from crypto assets.

  • The government plans to prohibit any activity by any person mining, generating, generating, possessing crypto or dealing in digital currency as a medium of exchange, store of value or unit of account. is of.

  • The purpose of the bill is to ensure the safety of consumers and investors.

    Along with this, a provision will also be brought to check tax evasion and money laundering through crypto.

    There is also information that there will be a provision to arrest the violator of these laws without warrant.

    And if someone is found to have indulged in terrorist activities through the transaction of cryptocurrency, then in such a situation, the Money Laundering Act will be applicable with appropriate amendments.

  • Market regulator SEBI will regulate crypto assets in the country.

    Through this bill, the government will be given this power to give exemption to some activities keeping in view the public interest.

  • It is also known that the virtual currency likely to be issued by the RBI has been kept out of this bill.

    Any issue related to digital currency will be regulated by RBI. 

  • It is known that in the bill, a groundwork will be prepared for the issuance of official digital currency (Digital Rupee) by RBI, while a framework will be laid for creating a 'distributed ledger technology' i.e. decentralized ledger.

    This currency will be regulated under the RBI Act.

  • Lastly, one more important thing, for those who are dealing in crypto assets, a cutoff date will be kept for them, under which they will have to declare their assets.

    It will be proposed in this bill that such people should be exempted who are using this technology in lawful activities.

    However, if this technology is being used citing experiment and research, then paying or taking payment from it will not be valid.