Government to ban all private cryptocurrencies in India

New Delhi: The government is considering a ban on all private cryptocurrencies in the proposed cryptocurrency bill to be tabled in the upcoming Winter Session of the Parliament, sources said.

No person shall mine, buy, generate, hold, sell, deal in, issue, transfer, dispose of or use cryptocurrency, the bill proposes, according to the sources.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is among 26 new bills on the agenda of the government for the winter session of parliament beginning November 29.

The Bill also has the provision of exit for those holding private cryptocurrency within the stipulated time frame, a report by CNBC Awaaz said.

The bill has also decided a definition of cryptocurrency. Any information such as code, number, taken that promises a price will be considered Cryptocurrency, the sources said.

The government has also proposed not to ban the legal use of technology used in cryptocurrency and there is also a proposal for exemption of use of distributed ledger technology.

The Bill aims “to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” it said in a notification on Lok Sabha website.

There is also a provision to give RBI the right to recognise foreign digital currency. RBI will have the right to discount the product under cryptocurrency technology, the report said.