The Indian Government Again Discussed The Prohibition of Electronic Money

The Indian government is said to be continuing its efforts to completely ban public electronic currencies.

A report from The Economic Times on April 26, citing “anonymous government officials with detailed information”, said that some government agencies in the country supported the idea of ​​a complete ban. the issuance and transaction of electronic money.

Officials said the Ministry of Economy (DEA), the Central Direct Tax Council, the Central Customs and Indirect Tax Council, together with the Education and Protection Fund Management Agency, all supported the order. prohibit.

A bill, named “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019”, is also said to have been shared with some government departments. Although it is not clear which official digital currency is mentioned, the country’s central bank previously studied the launch of a digital rupee.

A final bill, based on feedback from consulted departments, is expected to be proposed to the next government in May after the national election, sources said.

It is reported that the US State Department has provided feedback to the DEA, saying that most electronic currencies are operated as Ponzi plans to deceive investors. Therefore, the Department has proposed prosecutions related to electronic money to be handled under the country’s Anti-Money Laundering Act in the present time, as the introduction of an electronic money bill will take one time.

Another information from the same source said that the Executive Director of the Fund for Education and Investor Protection (IEPF), Anurag Agarwal, also said:

When it comes to protecting investors, the IEPFA must take a stand against certain things. We are taking stance against Ponzi plans. We think electronic money is a Ponzi plan and it should be banned.

In fact, India’s decision on the legitimacy of electronic money has long existed. From April 2017 onwards, the government has set up an interdisciplinary committee to investigate this issue, which is said to be discussing imposing a ban on private electronic currencies on the month. 10 years ago. However, the committee later did not support the ban completely, but only considered the possibility of legalizing electronic money with hard-line rules attached.

Until the final decision, the country’s electronic money industry is still in limbo. Since last year, banks in India have been banned by central banks – the Reserve Bank of India from serving electronic money trading companies and exchanges.

Later, several exchanges filed a legal petition to overturn the RBI ban, and the problem was gradually passed through the Indian Supreme Court, which had delayed announcing its decision several times in waiting for comments from the government. The next hearing is expected to take place in July.

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