"India's Cryptocurrency Ban".
India's Cryptocurrency Ban
18.02.2021
The ongoing budget session of Parliament will consider a bill that would ban all private cryptocurrencies in India and arrange for the issuance of official digital currency by the Reserve Bank of India.
According to the Lok Sabha schedule, Cryptocurrency and Official Digital Currency Bill Regulation 2021 is set to be introduced, considered and passed.
However, some exceptions will be allowed to promote the underlying technology and uses of cryptocurrency, the Lok Sabha bulletin said, adding that the central bank of India had in 2018 banned banks and other financial institutions from accessing cryptocurrency transactions.
Cryptocurrency exchanges responded to a lawsuit filed in the Supreme Court in September 2018, and it was granted relief in March 2020. A bench headed by the judge quashed the RBI's notification of inconsistency.
The purpose of the law-
1. Create a convenient framework for the official digital currency issued by the RBI.
2. India bans all private cryptocurrencies.