New Delhi: Finance Minister Nirmala Sitharaman on Tuesday said that no decision has been taken on banning advertisements on cryptocurrencies in India. Responding to a question about banning cryptocurrencies in the country, the Finance Minister in Rajya Sabha said that it is a risky area and not a full regulatory framework.
“Having regard to the propriety of the House, any answer now made will undo the discussion that will accompany the Bill. That discussion will happen,” Sitharaman said during Question Hour in the Rajya Sabha. “No steps have been taken yet to stop advertisements about cryptocurrencies, but investors have been warned. More will come with the bill,” the minister said, reimagining the previous bill on cryptocurrency.
Steps are being taken to create awareness through RBI and SEBI. He cautioned people that people investing in crypto should be careful. “The government has started an awareness campaign to make people aware, but I agree that more can be done to make the public aware. The risk of undesirable activities from cryptocurrencies is being closely monitored. It is being discussed at various levels.”
The minister said that the central government will introduce a new bill in Parliament during the ongoing winter session to regulate all private cryptocurrencies. The bill aims to formulate guidelines for regulating digital currencies.
RBI Governor Shaktikanta Das had earlier also issued a warning regarding trading in digital currency. Das said there was a need for debate and discussion before the formal launch of cryptocurrencies in India. He has also said that even though the value of transactions in virtual coins has gone up, about 80 per cent of the accounts have a balance of less than Rs 2,000.
Meanwhile, MP Sushil Kumar Modi demanded a separate law for non-fungible tokens (NFTs). During Question Hour in Rajya Sabha, he asked how many people have paid income tax on cryptocurrency earnings.
“No policy or direction has been given to banks for not giving loans to government employees. But banks exercise some level of discretion based on available KYC,” Sitaraman told the House when MPs raised the issue of banks’ reluctance to lend to government officials.
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