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    Govt may introduce bill to ban, control and regulate cryptocurrencies

    Govt may introduce bill to ban, control and regulate cryptocurrencies

    Govt may introduce bill to ban, control and regulate cryptocurrencies
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    By CNBC-TV18  IST (Updated)

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    The bill seeks to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI).

    The Narendra Modi government may introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the Budget session of the Parliament.
    Cryptocurrencies are digital or virtual currencies in which encryption techniques are used to regulate the generation of their units and verify the transfer of funds, operating independently of a central bank.
    The bill seeks to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI).
    The Lok Sabha Bulletin said, "The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of crytptocurrency and its uses."
    Last year, the Supreme Court had allowed banks and financial institutions from providing services related to cryptocurrencies by setting aside the RBI's 2018 circular which had prohibited them.
    A three-judge bench, headed by Justice R F Nariman, said the Reserve Bank of India (RBI) circular is liable to be set aside on the ground of "proportionality". "Accordingly, the writ petitions are allowed and the circular dated April 6, 2018 is set aside," said the bench, also comprising justices Aniruddha Bose and V Ramasubramanian.
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