Media: in India, a bill was prepared on a total ban on cryptocurrency

The government of India has developed a bill on the prohibition of cryptocurrency and the regulation of the official bill on digital currencies in 2019, which is designed to completely ban operations with Bitcoin and other cryptocurrencies within the country. On this Friday, April 26, reports The Economic Times , citing sources within the government.

The bill has been developed since 2018. Representatives of various departments, including the Department of Economic Affairs (DEA), the Central Council for Direct Taxes (CBDT), the Central Council for Indirect Taxes and Customs (CBIC) and the Office of Education and Investor Protection Funds (IEPFA) under the Government of India participated in its preparation .

The publication quotes unnamed officials, according to which these departments have supported a direct ban on the purchase, sale and release of cryptocurrencies. After receiving the necessary comments, the draft law in its final reading will be proposed to the next government of India, which will begin work after the elections in May.

In addition, a cryptocurrency ban can be passed in accordance with the Money Laundering Prevention Act (PMLA). In particular, officials had previously noted that the purchase and release of cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, etc., are made by private individuals and companies because of false motivations for receiving huge profits.

Such “schemes”, in their words, are not only opaque and do not fall under any regulated legal framework, but also often turn out to be financial pyramids, in which gullible investors are involved in order to deceive.

Note that earlier it was reported that the government of India is ready to legitimize the use of Bitcoin and other cryptocurrencies, but only under the strict restrictions of the industry .

Earlier this month, the Reserve Bank of India (RBI) unveiled a framework for fintech sandboxes, in which blockchain companies can also take part. However, cryptocurrency startups were not allowed to the project of the central bank. This prohibition applies directly to cryptocurrency protocols and services related to trading, investing or concluding transactions with digital assets.

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