(BlockBar) According to a Right to Information(RTI) request filed on June 4, The Reserve Bank of India(RBI) has denied any knowledge of a proposed ban on cryptocurrencies. To be noted, there have been reports that a number of governmental agencies have backed the draft legislation but RBI has denied any knowledge of it. Bank officials further said that the RBI was not in communication with governmental agencies during the legislative process and had not received a copy of the bill.
According to a report from the Economic Times, a lawyer named Varun Sethi, who is specializing in blockchain, has filed the inquiry into the RBI’s involvement with “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ draft. But several of Sethi’s questions have been forwarded to the Department for Economic Affairs as well as the Ministry of Finance by the bank which also includes, “What are ‘official digital currencies’ as per the RBI?”
When Prime Minister Narendra Modi first established a panel to study how to regulate the crypto sector in November 2017, several governmental initiatives had been undertaken to regulate blockchain. To be noted, the bank has also been involved in cryptocurrency legislation as recently as April when the organization unveiled a regulatory sandbox. This sandbox would allow blockchain products to be tested on a sample of consumers. It is worth noticing that the sandbox would be excluding digital currencies, although the bank has not endorsed a full ban on cryptocurrencies in the past.
A committee in support of a total ban was “of the view that already there is a lot of delay in taking action against cryptocurrency.” The committee includes representatives of the Department of Economic Affairs (DEA), Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC), among others, according to a report of Economic Times. If the bill is passed, then those who “mine, generate, hold, sell, issue, transfer, dispose or deal in cryptocurrencies directly or indirectly” could be jailed for up to 10 years. The draft also advocates introduction of the ‘Digital Rupee, an official digital currency for India.
Mayan MV is a passionate writer and cryptocurrency enthusiast. He currently serves as marketing strategist and contributor at BlockBar, based in Singapore. Mayan has started his career in blockchain technology about five years ago, and he has also written over a hundred articles that span across various fields.