Clearing all the doubts and panic among the investors about the upcoming cryptocurrency billFinance Minister Nirmala Sitharaman said on Tuesday that the government is working on a new bill to regulate cryptocurrency in India. Replying in the Rajya Sabha, Sitharaman said, “There were other dimensions and the Bill had to be reworked and now we are trying to work on a new Bill,” she said.
He further added, “There was extensive discussion on the regulatory potential of cryptocurrencies and “wait for the bill”.
The Center is likely to introduce the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ during the winter session of Parliament. “The bill also seeks to ban all private cryptocurrencies in India. However, it allows certain exceptions to promote the cryptocurrency and the underlying technology of its use,” the Lok Sabha website mentioned in the bulletin. Following this news, cryptocurrency holders started panicking at Indian exchanges. Bitcoin, Ether and all other major cryptocurrencies in the Indian market fell sharply for the week.However, the price of the cryptocurrency gradually recovered.
So, the details of the crypto bill in the Lok Sabha website bulletin were out of date and the government is working to bring a new bill on cryptocurrency, the finance minister clarified.
The Finance Ministry said that the central government has conducted a study through a research firm on “Virtual Currency: An Analysis of Legal Framework and Regulation for Regulation” in July 2017. In the same year, the central government constituted a high-level inter-ministerial committee under DEA secretary Subhash Garg for issues related to virtual currencies. The committee submitted a detailed report in July 2019, suggesting that “all private cryptocurrencies, except any state-issued cryptocurrencies, be banned in India”.
“The risks of cryptocurrency and its falling into the wrong hands are being monitored,” the finance minister told the Rajya Sabha on Tuesday.
Sitharaman said that the government is close to bringing the crypto bill in Parliament. It will be introduced after the approval of the cabinet. “It is a risky area and not in full regulatory framework. No decision was taken on banning its advertisements. Steps are being taken to create awareness through RBI and SEBI. Government will introduce a bill soon. Sitharaman said during Question Hour in Rajya Sabha on cryptocurrencies.
“Cryptocurrency needs to be regulated” India With a proper framework rather than being arbitrarily restricted. Crypto is a very different asset class because there is no underlying fundamental value other than demand and supply – like any other collectible such as stamps or jewellery. Additionally, the Digital Rupee is a very welcome step, and will play a big role in leading India into a digital age of innovation with many advantages over traditional physical currency,” said Raja Gopalakrishnan, Executive Vice President – Global Real Time Payments, FIS. he said .
In a written reply to a question on CBDC, the Finance Ministry said, “Central Bank Digital Currency (CBDC) has been introduced by a Central Bank. Broadening the scope of the definition of ‘bank note’ to include currency in digital form.” The government has received a proposal from the Reserve Bank of India (RBI) in October, 2021 to amend the Reserve Bank of India Act, 1934. RBI is examining the use cases and a phased implementation strategy for introducing CBDCs working with little or no interference.
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