New Delhi: India’s much-awaited cryptocurrency bill is unlikely to be introduced in the current session Parliament As per people with knowledge of the matter, the government is yet to finalize the details of the law.
Prime Minister Narendra Modi’s administration wants wider consultations on the matter before finalizing rules to govern digital currencies and there is not enough time as the current session ends on December 23, people said. Said that the discussion is private due to lack of identity. Also, the cabinet has not approved the proposed law.
A finance ministry spokesperson could not be immediately reached for comment.
The program for the last week of the Parliament session has removed the cryptocurrency bill from the trade list posted on its website. However, the government can bring a law through an ordinance even when the Parliament is not in session.
The bill proposes to help the central bank create an official digital currency, said a detail on Parliament’s website last month. The law seeks to “ban all private cryptocurrencies in India, however, it allows for certain exceptions to promote the cryptocurrency and the technology underlying its use,” the text read.
India is one of the world’s fastest growing markets for cryptocurrency trading, with around 1.4 billion people, but the country has had a hot and cold relationship with virtual coins. The central bank effectively banned crypto transactions in 2018, but the Supreme Court lifted the ban last year.
Demand for stricter regulations has increased since then, amid concerns that an unregulated environment could attract more domestic savings toward volatile assets. According to an October report by crypto-analysis firm, Chainalysis, the crypto market in India has grown by 641% as of June 2021.
The bill has been reworked to make it more recent, Finance Minister Nirmala Sitharaman Said earlier. Bloomberg News previously reported that the Reserve Bank wants a ban on cryptocurrencies, but the government is considering the option of allowing crypto as a financial asset.
Prime Minister Narendra Modi’s administration wants wider consultations on the matter before finalizing rules to govern digital currencies and there is not enough time as the current session ends on December 23, people said. Said that the discussion is private due to lack of identity. Also, the cabinet has not approved the proposed law.
A finance ministry spokesperson could not be immediately reached for comment.
The program for the last week of the Parliament session has removed the cryptocurrency bill from the trade list posted on its website. However, the government can bring a law through an ordinance even when the Parliament is not in session.
The bill proposes to help the central bank create an official digital currency, said a detail on Parliament’s website last month. The law seeks to “ban all private cryptocurrencies in India, however, it allows for certain exceptions to promote the cryptocurrency and the technology underlying its use,” the text read.
India is one of the world’s fastest growing markets for cryptocurrency trading, with around 1.4 billion people, but the country has had a hot and cold relationship with virtual coins. The central bank effectively banned crypto transactions in 2018, but the Supreme Court lifted the ban last year.
Demand for stricter regulations has increased since then, amid concerns that an unregulated environment could attract more domestic savings toward volatile assets. According to an October report by crypto-analysis firm, Chainalysis, the crypto market in India has grown by 641% as of June 2021.
The bill has been reworked to make it more recent, Finance Minister Nirmala Sitharaman Said earlier. Bloomberg News previously reported that the Reserve Bank wants a ban on cryptocurrencies, but the government is considering the option of allowing crypto as a financial asset.
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