Crypto The New Age “Tech Bullion”: Legislation on The Anvil & The Ever-Evolving Outlook
- Blog|News|FEMA & Banking|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 30 December, 2021
Latest from Taxmann
[2021] 133 taxmann.com 249 (Article)
On December 13, 2021, Lower House of the Parliament was apprised by the Hon’ble Minister of State for Finance that a Bill on Cryptocurrency & Regulation of Official Digital Currency is under finalization for consideration of the Union Cabinet. The bill is titled as, “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021″
As per the Government’s slated version, the Bill aims “To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (‘RBI’). The Bill also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”The contemplated options include a complete ban on private cryptocurrencies, recognizing all or some categories of crypto products under a prescribed regulatory framework.
The proposed law on Crypto is likely to be line with the Financial Action Task Force (‘FATF’) Guidance. In October 2018, FATF had added two new definitions to the Glossary: Virtual Asset (‘VA’) and Virtual Asset Service Provider (‘VASP’). The said guidance was updated in October 2021, to assist both National Authorities as well as Private Sector entities in understanding & developing regulatory and supervisory responses to VA & VASPs and in understanding relatable Anti-Money Laundering and Countering the Financing of terrorism (‘AML/CFT’) Obligations.
According to the Hon’ble Union Finance Minister, the Centre had not received any proposal from the RBI (India’s Central Bank) to recognize Bitcoin as a currency in India. The Central Bank has recommended widening the definition of “Bank Notes” to include within its ambit Central Bank Digital Currency (‘CBDC’). CBDC is regarded as the digital form of country’s fiat currency, a virtual money backed and issued by Central Bank. As on date, India is not the only emerging economy which is evaluating a CBDC.
Click Here to Read the Complete Article
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
