The Union Cabinet on Tuesday approved to introduce banning of Unregulated Deposit Schemes, 2018, which include Ponzi schemes and the usage of cryptocurrencies, in Parliament. The bill will provide a comprehensive legislation to deal with illicit deposit schemes in the country, the government said.
It will completely prohibit unregulated deposit-taking activities and introduce deterrent punishment for promoting and operating the unregulated deposit-taking scheme. In the Budget 2018, Finance Minister Arun Jaitley had said reiterating his stand and extending the warning one more time, that dealing with cryptocurrencies was not legal in India.
“The bill is aimed at tackling the menace of illicit deposit-taking activities in the country; companies/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 government said in a statement.
With the passage of this bill by both houses of the Parliament, it is likely that Ponzi schemes and dealing in cryptocurrencies will become illegal. Along with that the Union Cabinet, chaired by Prime Minister Narendra Modi, also approved the introduction of Chit Funds (Amendment) Bill, 2018.