Three important updates of Bitcoin from India :1: Government yesterday passed a bill to stop or ban ponzi sceme like bitcoin. 2) Government had announce penalty to collect bitcoins in India. 3) SBI and RBI stop paying for bitcoin payments. Beware.
1.) As India cozies up facilitate with digital currencies, it would appear that aficionados should give the legislature a chance to get a ringside perspective of the activity, as a proposition to connect accounts on Bitcoin trades to clients' national IDs is in progress.
Ajeet Khurana, leader of the Blockchain and Digital money Council of the Web and Portable Relationship of India (IAMAI), told the Monetary Circumstances that the gathering (which considers seven cryptographic money trades as a real part of its individuals) plans to present a proposition to the administration, in which the concerned organizations will have the capacity to look into buy information for all purchasers and dealers on local trades and follow their movement through their Aadhaar ID or Perpetual Record Numbers (Dish).
While the Dish has been around for quite a few years to empower subjects and outside nationals to make money related exchanges in India, the nation's Aadhaar ID framework is later and has been under flame over protection observation concerns.
The choice to propose traceable movement inside India's residential trades takes after an announcement from the nation's Back Priest from prior this month, in which he said that cryptographic forms of money aren't lawful delicate there (to be clear, no cash aside from the Indian Rupee is a lawful delicate in the nation), and that there will be a crackdown on the utilization of virtual monetary forms in financing ill-conceived exercises.
Likewise, India's duty experts have issued notification to somewhere in the range of 100,000 speculators, requesting that they uncover the benefits they've earned through exchanging. There's conceivable bounty in assessments to be gathered, as one in each 10 Bitcoin exchanges is said to happen in the nation.
It'll be intriguing how this plays out, and what it spells for speculators crosswise over India. After the proposition is submitted to the administration board directing cryptographic money action this week, it's relied upon to share its suggestions one month from now.
2). Cabinet approves bill that bans ponzi schemes, cryptocurrencies
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, today gave approval to Unregulated Deposit Schemes Bill, 2018 that seeks to ban all unregulated deposit schemes including Ponzi schemes and the ones linked to cryptocurrencies.
The bill is aimed at tackling the menace of illicit deposit taking activities in the country, said a Finance Ministry statement.
Companies and institutions running such schemes exploit existing regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings, the statement said.
The government had recently warned investors of investing in cryptocurrencies like Bitcoins, saying those were like ponzi schemes.
“The bill provides for a complete prohibition of unregulated deposit taking activity, deterrent punishment for promoting or operating an unregulated deposit taking scheme, stringent punishment for fraudulent default in repayment to depositors, designation of a Competent Authority by the state government to ensure repayment of deposits in the event of default by a deposit taking establishment, powers and functions of the competent authority including the power to attach assets of a defaulting establishment, designation of courts to oversee repayment of depositors and to try offences under the Act; and listing of Regulated Deposit Schemes in the Bill, with a clause enabling the Central Government to expand or prune the list,” said the statement.
Finance Minister Arun Jaitley in his Budget 2018 speech had announced that a comprehensive central legislation would be brought in to deal with the menace of illicit deposit taking schemes, as in the recent past, there have been rising instances of people in various parts of the country being defrauded by illicit deposit taking schemes.
The draft bill to curtail the menace of illicit deposit schemes had been placed in the public domain and would be introduced shortly after its finalisation.
3).
Bitcoin Crackdown: SBI Stops Short Of Banning Bitcoin Purchases. 5 Things To Know
SBI Card is the second largest credit card issuer in India. Earlier this month, Citi India had banned used of its debit as well as credit card for purchasing crypto-currencies or virtual currencies.
SBI did not ban use of its credit card for bitcoin investments
SBI Card Tuesday cautioned customers of risks associated with bitcoin and other crypto-currencies, but did not ban use of its credit card for such investments. With a customer base of over 5 million, SBI Card is the second largest credit card issuer in India. Earlier this month, Citi India had banned used of its debit as well as credit card for purchasing crypto-currencies or virtual currencies. Virtual currencies are stored in digital/electronic format, making them vulnerable to hacking, loss of password and malware attack which may also result in permanent loss of money.
SBI cautions customers against bitcoins: Five Things To Know
- In a message to customers on bitcoins/crypto-currencies, SBI Card said the Reserve Bank has issued advisories to financial institutions and public that it has not given any licence/authorisation to any entity to operate in crypto-currency schemes or any virtual currencies such as Bitcoins.
- The State Bank of India statement said, "Given concerns, both globally and locally, SBI Card would like to advise you to be mindful of potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with crypto-currencies and virtual currencies," it said.
- Before SBI, Citi India, in a message, had said to its customers that it has banned usage of its debit and credit cards for purchase or trading of virtual currencies.
"Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, crypto-currencies and virtual currencies," the message read.
- Finance Minister Arun Jaitley in his budget speech had said the government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.
- The RBI has also clarified that it has not given any licence/authorisation to any entity/company to operate such schemes or deal with bitcoin or any virtual currency.