Crypto News Today: Prime Minister Modi’s Statement on Cryptocurrency Amid Final Preparations for Regulation: 10 Facts

PM Modi will make the final decision on the regulatory framework for cryptocurrencies

Prime Minister Narendra Modi today said that emerging technologies such as cryptocurrencies should be used to empower democracies and not undermine them. According to reports, Prime Minister Modi will make the final decision on the regulatory framework for cryptocurrencies, amid mixed views, as policymakers remain adamant that transactions Unregulated digital currency can affect macroeconomic and financial stability.

1. “We must…together shape global standards for emerging technologies like social networks and cryptocurrencies so that they are used to empower democracy, not to undermine it.” , Prime Minister Modi said during a virtual summit hosted by US President Joe Biden

2. After initially planning to ban all private cryptocurrencies, the government has announced that it will establish a regulatory framework, as part of a new crypto bill that will be introduced during the session. winter session of the National Assembly.

3. However, cryptocurrencies will not be recognized as legal tender or currency in India. The name of the law replaced the word “cryptocurrency” with “cryptocurrency”. The bill also seeks to mitigate financial stability risks by appropriately barring the formal financial sector from crypto-assets.

4. The bill proposes the establishment of a framework to facilitate “distributed ledger technology” and lays the groundwork for the creation of an official digital currency (digital rupee) issued by the Reserve Bank of India. Degree (RBI) issuer, governed by the RBI Act.

5. To prevent those found to be using these assets for terrorism-related activities, the provisions of the Anti-Money Laundering Act (PMLA) will be applied with appropriate amendments.

6. Individuals and corporations that violate government rules on crypto finance will face fines of up to Rs 20 crore and a prison sentence of 1.5 years, under proposed legislation to regulate money electronics in India.

7. The Cryptocurrency Bill empowers the government to exempt certain activities in the public interest such as cryptocurrency mining, creation of a hold, sale of a transfer, issuance, or consolidation as a means of disposing of it. a medium of exchange, a store of value, and a unit of account.

8. The cryptocurrencies will be processed on the existing crypto exchange platforms which will be regulated by the Securities and Exchange Commission of India (SEBI). A cut-off date will be set for those who have cryptocurrencies to declare and put on crypto exchange platforms – will be set by SEBI.