Parliament Panel Hassles on Cryptocurrency guideline in a meeting

Samara Davis
By Samara Davis
editor

November 30, 2021


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  • India has been very fragile in terms of cryptocurrency. Back in 2018, the Reserve bank Of India suspended bitcoin payments in the country, and no banks were allowed to accept bitcoin payments. However, the supreme court of India later lifted the ban and subsequently a petition was filed. We all are familiar with the fact that India was about to ban utilising cryptocurrencies in the country. 

    The Reserve Bank of India even announced a bill regarding the cryptocurrency ban. So you can start your cryptocurrency trading journey without any complications. If you don’t know how to avail good outcomes in the trading journey, this website is helping newbies to start their bitcoin trading journey. However, the bill was about to ban cryptocurrency trading, holding bitcoin as an asset and even bitcoin mining. One of the prominent reasons why RBI was about to ban bitcoin is its volatility.

     However, the bill was not tabled in the parliament session. However, on the 22nd of November, a parliament panel discussed the advantages and disadvantages of cryptocurrencies amongst different stakeholders. Let’s find out the conclusion of this meeting.

    Parliament Panel Formed by Jayant Sinha discussed Cryptocurrency Finance in India!

    Jayant Sinha, a BJP leader, formed the parliament panel, and the panel, in a meeting, discussed the benefits and cons of the cryptocurrency finance industry. There were ample stakeholders and cryptocurrency experts in that explicit meeting.

     The majority of the meeting’s members were entirely in favour of cryptocurrencies. However, the meeting did not conclude with imposing an out-and-out suspension on the new flanged currencies as rich sources. 

    The meeting addressed issues like money laundering and risks deriving from cryptocurrency trading, specifically when the return on these assets expands like a forest fire. Unfortunately, there are no absolute cryptocurrency guidelines on the usage of cryptocurrencies in this instance. 

    Neither cryptocurrencies are classified as an asset class nor as an acceptable currency. RBI has clearly stated that cryptocurrency cannot act as the national currency of India as the market value of these currencies due to the factors affecting them is very high. The market value of cryptocurrency is susceptible—factors like supply and demand and cryptocurrency regulations in different countries. 

    Also Read: Specific Uses for Cryptocurrency

    CEO of Cryptocurrency Exchange was present in the meeting. 

    As mentioned ahead, there were many cryptocurrency experts in the parliament panel. A cryptocurrency exchange in India is exploding at a rapid pace. The panel correspondingly included the chief of these cryptocurrency exchanges alongside prominent blockchain-based models and CAC members.

     CAC stands for the crypto assets council, and in the meeting, these experts addressed the issues of Ponzi schemes. Ponzi schemes attract new customers in the cryptocurrency industry by promising very high and guaranteed returns in a nominal range of time. Ponzi schemes use the money in pooling fraudulent activities and actions. 

    Cryptocurrency must be regulated- The Conclusion of Meeting. 

    If you are a cryptocurrency enthusiast, you don’t need to worry about the cryptocurrency ban. No one in the meeting agreed to impose a straight-up ban on these gold mines or new flanged currencies. However, all the members of the parliament panel agreed that we must regulate cryptocurrencies. We cannot leave them unregulated as it will lead to an immense misuse of cryptocurrencies. 

    Some members were highly concerned about the probability of cryptocurrencies being used for money laundering and financial trepidation activities. After the meeting, BJP leader Sinha stated that they had considered the point of view on the supervisory agenda of the cryptocurrency industry. However, the core notion was not to acquire the ideas and points of view of cryptocurrency experts and heads of the trustable exchange. 

    The opinion of the panel was to create a line on cryptocurrency fungibility in the actual world. 

     The utility of this digital coin in India will be regulated. Some sources have assumed that cryptocurrency might be classified in the asset class and prohibited for currency transactions. Parliament panel also concluded that they must create some guidelines as soon as possible to prevent the financial terrors led by these currencies.

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