LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Cabinet approves bill that seeks to ban crypto-linked ponzi schemes

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
 Cabinet approves bill that seeks to ban crypto-linked ponzi schemes
The bill is aimed at tackling the menace of illicit deposit taking activities in the country, said a Finance Ministry statement. Image source: Pixabay
Written By: ZeeBiz WebTeam
Updated: Wed, Feb 21, 2018
11:21 am
ZeeBiz WebDesk
RELATED NEWS
Bitcoin : Microstrategy and Tesla are moving parts of their corporate treasuries into Bitcoin says CIti Research Bitcoin : Microstrategy and Tesla are moving parts of their corporate treasuries into Bitcoin says CIti Research
In chat with Anil Singhvi, Market Expert Ajay Bagga talks about increasing bond yields, its impact on economy and Bitcoin price crash In chat with Anil Singhvi, Market Expert Ajay Bagga talks about increasing bond yields, its impact on economy and Bitcoin price crash
Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000 Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000
Bitcoin hits fresh high Bitcoin hits fresh high
Tips! Bitcoin price hits $50,000 mark; one sided buying or selling not a correct strategy to invest in any asset class, Anil Singhvi says Tips! Bitcoin price hits $50,000 mark; one sided buying or selling not a correct strategy to invest in any asset class, Anil Singhvi says

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday gave approval to Unregulated Deposit Schemes Bill, 2018 that seeks to ban all unregulated deposit schemes.
 
The bill is aimed at tackling the menace of illicit deposit taking activities in the country, said a Finance Ministry statement.
 
Companies and institutions running such schemes exploit existing regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings, the statement said. 

ALSO READ: Who moved my savings? The conundrum of declining savings post-demonetisation

“The bill provides for a complete prohibition of unregulated deposit taking activity, deterrent punishment for promoting or operating an unregulated deposit taking scheme, stringent punishment for fraudulent default in repayment to depositors, designation of a Competent Authority by the state government to ensure repayment of deposits in the event of default by a deposit taking establishment, powers and functions of the competent authority including the power to attach assets of a defaulting establishment, designation of courts to oversee repayment of depositors and to try offences under the Act; and listing of Regulated Deposit Schemes in the Bill, with a clause enabling the Central Government to expand or prune the list,” said the statement.

The move may also tighten the noose around cryptocurrency-linked ponzi schemes, that have flourished amid surging popularity of cryptos like Bitcoins. 

Notably, the government had recently warned investors of investing in cryptocurrencies like Bitcoins, saying those were like ponzi schemes. 

“Virtual Currencies (VCs) don’t have any intrinsic value and are not backed by any kind of assets. The price of Bitcoin and other VCs, therefore, is entirely a matter of mere speculation resulting in spurt and volatility in their prices. There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes,” said the press release issued by the Ministry of Finance on December 29, 2017.
 
ALSO READ: Life insurance policy: Know here how much TDS you pay on maturity

Meanwhile, Finance Minister Arun Jaitley, in his Budget 2018 speech, also said that bitcoin is not a legal tender in India and the government is awaiting for an expert report on virtual currencies before taking any decision.

"The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system," Jaitley said. 

However, Ajeet Khurana, Head, Blockchain and Cryptocurrency Committee (BACC) of IAMAI believes FM's statement has been misinterpreted. 

"It is our understanding that only currency notes and coins are legal tender. That doesn't make any comment on the ‘illegality’ of other assets. It must be emphasized that gold, stocks, bonds, and other such assets are also not ‘legal tender’. To extrapolate that to mean that such assets are ‘illegal’ is irresponsible," Khurana said. 

"We understand the government's position in wanting to eliminate the use of crypto-assets as part of the payment system. Since we are committed to support every regulation that the Government brings in, we will work with the Government to help it achieve its stated objective," he added. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Bitcoincabinet meetCryptocurrenciesFinance MinistryUnregulated Deposit Schemes Bill 2018unregulated deposits
RELATED NEWS
Bitcoin : Microstrategy and Tesla are moving parts of their corporate treasuries into Bitcoin says CIti Research Bitcoin : Microstrategy and Tesla are moving parts of their corporate treasuries into Bitcoin says CIti Research
In chat with Anil Singhvi, Market Expert Ajay Bagga talks about increasing bond yields, its impact on economy and Bitcoin price crash In chat with Anil Singhvi, Market Expert Ajay Bagga talks about increasing bond yields, its impact on economy and Bitcoin price crash
Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000 Anil Singhvi decodes Bitcoin status as just one tweet by Elon Musk breaks cryptocurrency by a massive $8000
Bitcoin hits fresh high Bitcoin hits fresh high
Tips! Bitcoin price hits $50,000 mark; one sided buying or selling not a correct strategy to invest in any asset class, Anil Singhvi says Tips! Bitcoin price hits $50,000 mark; one sided buying or selling not a correct strategy to invest in any asset class, Anil Singhvi says

LATEST NEWS

Gujarat not to increase tax rates in Budget 2021-22

Heranba IPO Allotment Status: Finalised! Didn't get shares? Waiting for refund? Know this important date

Gold Price Today 3-03-2021 –Gold cheaper by Rs 4600 in 2021, Silver by Rs 766; time to buy gold NOW expert says

In chat with Anil Singhvi, analyst Vikas Sethi picks Phillips Carbon, L and T Finance as top buys for big gains

Why Gold prices have got low and is it expected to fall lower? Should people be looking to invest in it?

Stocks in Focus on March 3: MTAR Technologies IPO, Tata Power, IRCON, Telecom Stocks to Tyre Stocks; here are the 5 Newsmakers of the Day

PUBG Update: PUBG New State game may launch in India? Details here

PayPal plans to hire over 1K engineers in India

UP Gram Panchayat Election 2021 Reservation List Latest News Today: Check pradhan seat aarakshan details here

MTAR Technologies IPO News: Check allotment status finalisation, listing date and how to check share subscription

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved