In a major policy initiative to protect the savings of the investors, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to introduce the Banning of Unregulated Deposit Schemes Bill, 2018 in Parliament. Though the Bill does not explicitly refer to regulation of cryptocurrencies. R. N. Dubey, Economic Adviser, Department of Financial Services, Indian government stated, that anything which is regulated is legitimate activity, if it is not regulated, it is illegitimate. While bitcoin or cryptocurrencies are not regulated, the bill doesn’t mandate a ban on cryptocurrency but deposit schemes. Hence, if somebody deposits in the form of cryptocurrency, then the illegal activity will come under the ambit of the Bill.
March 12th, 2018