Crypto Bill in India Might not be here Anytime Soon Afterall
- The Cryptocurrency Bill, which the government had listed as one of the agenda items for the Parliament’s Winter Session, may not be tabled during the current session.
- According to a senior government official, the government is considering changes to the proposed cryptocurrency framework.
The Cryptocurrency Bill, which the government had listed as one of the agenda items for the Parliament’s Winter Session, may not be tabled during the current session. According to a post in News18, the government is considering changes to the proposed cryptocurrency framework. As a result, it is possible that it will not be introduced during the winter session of parliament as planned.
The issues being debated include the need for broader consultation and soliciting public feedback, as well as whether the Reserve Bank of India’s proposed Central Bank Digital Currency (CBDC) should be included in this bill or dealt with under the RBI Act.
The officials said that “After several rounds of discussions at the highest levels, it was felt that any legislation surrounding cryptocurrency must be in tandem with a global framework which is still evolving. It might be a better strategy to wait and observe how this space evolves globally. Also, it was felt that the government could consider existing laws and regulations to ensure consumer protection and taxing cryptocurrency transactions in the meantime.”
At the Summit for Democracy hosted by US President Joe Biden on Friday, Prime Minister Narendra Modi called for concerted efforts to shape global norms for social media and cryptocurrencies to ensure they are used to “empower democracy rather than undermine” it. Because cryptocurrency regulation is still evolving globally, Indian legislation should not be rushed but instead crafted with broad consultation, according to the official.
Finance Minister Nirmala Sitharaman previously stated in Parliament that the government is working on a new cryptocurrency bill that will address all aspects of the rapidly changing virtual currency space. She said that “Yes, last time [monsoon session] there was a Bill but subsequently because there were other dimensions. That Bill has been reworked. And in a way, the Bill which is coming now is a new Bill. But, never mind, the work done on that Bill has all been taken on board here”.