Bureau:

The Indian central government proposes to establish a “facilitative framework for distributed ledger technology” as part of the proposed cryptocurrency regulation bill that is slated to be taken up for the approval by the cabinet shortly, perhaps as early as next week.

The Bill proposes to prohibit certain aspects of crypto asset usage such as “currency substitutes or as payment systems or for remittances”, according to official sources in the know of the matter.

The Bill also proposes a “general prohibition on all activities by any individual on mining, generating holding, selling, dealing in issue, transfer, disposal of or use of cryptocurrency as a medium of exchange, store of value and a unit of account”.

Crucially, the Bill proposes that since the “underlying technology of crypto assets is still evolving and has many uses”, any person using technology underlying can crypto-assets for any lawful activity will be exempted from the proposed restrictions. The technology or process underlying any cryptocurrency for purpose of experiments and research however, cannot be used for making or receiving any payments.

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