The holding of crypto assets like Bitcoins which are not approved by the government may become a punishable offense, as per the new crypto laws. The legislature and the RBI stresses to ensure that unregulated crypto resources are not utilized to pay any taxes or strike deals outside the administrative limits, including multi-level marketing (MLM) and Ponzi plans.
A committee headed by Subhash Chandra Garg, secretary of the department of economic affairs, is presenting its cryptocurrency report by December. The report characterizes the expansive forms of an administrative framework for crypto assets and virtual currencies.
RBI said that payment industry is rising quickly along with factors such as the rise of private digital tokens and increasing expense of managing fiat paper/metallic cash. These factors have driven central bank far and wide to investigate the alternative of presenting fiat digital currencies.
However, RBI had banned banks and financial organizations managing virtual currencies like Bitcoin in India. They were given three months (finishing June 2018) to exit from any such administrations if they were offering.
The legislature does not want to allow unregulated crypto assets to move into the financial framework. Proper changes in existing laws are supposed to be made by the Garg-panel. These changes will characterize the reformatory measures for those discovered holding illicit crypto assets.
As reported by Quartz India, Garg-panel also recommended that India might soon bring its own government-backed cryptocurrency. The panel also puts an effort to develop blockchain technology in India. The government is seeking control over the virtual currencies which can be used to trick investors and launder money.
According to a report by Money Control, Arun Jaitley, in his Budget Speech 2018-19 said that cryptocurrency like Bitcoins was not legitimate in India. He also indicated that the government is enthusiastic for Blockchain technology to bring more transparency in India’s payment system.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]