JAKARTA - India will enact a law banning cryptocurrencies from private companies, while they are drafting an official digital currency from the central bank.
A Reuters source, quoted on Sunday, January 31, wrote the agenda posted on the website of India's lower house saying the law would "provide a facilitating framework for the creation of digital currencies issued by the Reserve Bank of India (RBI)".
The law will prohibit all private cryptocurrencies, however, there will be exceptions to promote the technology underlying cryptocurrencies and their use.
An Indian governing panel in mid-2019 proposed banning all private cryptocurrencies with imprisonment of up to 10 years and fines for people involved with digital currency.
Meanwhile, they asked the government to consider digital currencies to function like paper money, issued by the Reserve Bank of India.
The Reserve Bank of India in 2018 called on financial institutions to stop deals with individuals and businesses, which involve virtual currencies such as Bitcoin.
However, in March 2020, India's Supreme Court allowed banks to process cryptocurrency transactions from exchange rates and traders.
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