A draft bill to ban Cryptocurrencies in India, The Reserved Bank of India (RBI) denies involvement.

The Reserved bank of India denies involvement in draft bill to ban Cryptocurrencies.

Despite reports that stated a number of governmental agencies involvement backing the draft legislation according to a Right to Information request filed on 4th June. The Reserved Bank of India has denied involvement in such move or knowledge of any draft bill to ban Cryptocurrencies.

A lawyer specializing in blockchain, Varun Sethi filed the inquiry into the RBI’s involvement with “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ draft, according to a report from the Economic Times. There would be a ban on the sale, purchase, and issuance of all types of cryptocurrencies.

The Reserved Bank of India officials reported that the bank was not in communication with governmental agencies during the legislative process and had not received a copy of the bill. The bank forwarded several of Sethi’s questions to the Department for Economic Affairs as well as the Ministry of Finance received various questions from Sethi by the bank which includes, “What are ‘official digital currencies’ with regards to the RBI?”

It was in April when the organization unveiled a regulatory sandbox that would allow blockchain products excluding digital currencies to be tested on a sample of consumers, that the bank had been involved in crypto legislation. There was no full ban authorised on cryptocurrencies in the past by it.

Though several governmental initiatives within Indian country have been undertaken to regulate blockchain, for instance was when Narendra Modi, the Prime Minister first established a panel to study how to regulate the crypto sector in November 2017.

The Economic Times reported Furthermore, there was also a committee in support of an outright ban, which includes representatives of the Department of Economic Affairs (DEA), Central Board of Indirect Taxes and Customs (CBIC), Central Board of Direct Taxes (CBDT), among others was “having same view that there is a lot of delay already in taking action against cryptocurrency.”
If the ban bill is finally passed, then those who “mine, generate, hold, sell, dispose, transfer, issue or deal in cryptocurrencies directly or indirectly” could actually face up to 10 years
jail sentence.

The draft also advocates for the introduction of ‘Digital Rupee,’ an official digital currency for India and this is presumed not to lead anyone to jail.

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Credits: Daniel Kuhn

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