July 08, 2019

Facebook’s Yet To Be Launched Cyrptocurrency Libra Fails To Convince Skeptical Indian Officials; Law To Jail Violators Likely

[ By Bobby Anthony ]

Top Indian officials have stated that India is not keen on allowing transactions in Facebook Inc’s new cryptocurrency called Libra.

According to an economic affairs secretary, the design of the Facebook cryptocurrency has not been fully explained and that it is merely a private cryptocurrency.

Incidentally, both the government and the Reserve Bank of India have outlawed cryptocurrencies after it barred banks from dealing in them. The government is already in the process of drafting a law with stringent penalties against their use.

Libra is expected to launch in 2020 or later and is being marketed as a stable digital currency which would not fluctuate much because it is supported by established government-backed currencies and securities.

However, Facebook, which also owns WhatsApp hasn’t yet formally sought permission from India to launch Libra in the country.

Earlier, the Supreme Court of India had endorsed the Reserve Bank’s April 2018 ban on cryptocurrencies after cryptocurrency exchange operators in India had challenged the move in court.

The matter will come up for hearing on July 23.

Meanwhile, it has been reported that the Indian government’s draft law called Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019, is likely to propose a jail term of one to 10 years for those who mine, hold or sell cryptocurrencies in India.

Related Post

latest News

  • Government Planning To Increase Threshold Of Default To Invoke IBC, Says Corporate Affairs Secretary Injeti Srinivas

    The government plans to increase the threshold amount to invoke bankruptcy proceedings in order to prevent businesses from being dragged into bankrupt...

    Read More
  • Delhi High Court Rejects Enforcement Directorate Pleas To Cancel Bail Of Sterling Biotech Money Laundering Accused

    The Delhi High Court has dismissed the pleas of the Enforcement Directorate seeking cancellations of bail of two accused in a money laundering case al...

    Read More
  • Jindal ITF Ltd. wins INR 2015 Crores plus interest and applicable taxes in Arbitration against NTPC

    The Final Award dated 27.01.2019 has now been pronounced by the Hon’ble Arbitral Tribunal, which was constituted of three Hon’ble Members [Justice...

    Read More