Besides, there are concerns over the instrument being used for money laundering and terror funding, an issue that has been flagged by other agencies across the world, sources told TOI.
whereas Supreme court The ban imposed by the RBI was lifted, the government listed a bill on cryptocurrency that was to be introduced Budget session of Parliament But due to the short session, the law could not make it.
The government remained silent on the future of the proposed bill with the finance minister during the monsoon session Nirmala Sitharaman recently saying that it has been sent for approval central cabinet before it can be introduced in Parliament. The next session is at least two months away.
But crypto exchanges have used the interim period to launch massive lobbying initiatives with several governments and regulatory agencies, raising concerns. Exchanges have argued that banning digital currency transactions will result in job losses.
While there are apprehensions that the ban will lock investors into the instrument, sources indicated that a window of three-six months would be provided to the investors to exit.
Many authorities have rejected the argument that cryptocurrencies are an asset class. In addition, there are concerns on legal grounds for the presence of some exchanges that are outside the jurisdiction of either. Self Or RBI. “There has to be global coordination to counter the challenge posed by cryptocurrencies. They are not a currency as only sovereigns can issue currency. There is a serious danger in allowing these instruments,” said a source.
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