Right now, all eyes are on India’s cryptocurrency regulatory bill, which is likely to be submitted during this year’s Winter Session of the Parliament of the Republic of India in Upcoming weeks.
In recent weeks, there have been numerous discussions and debates over India’s attitude on cryptocurrencies, which are still unregulated in the country. An article in the Economic Times stated that Prime Minister Narendra Modi will make a final decision on the regulatory framework for the Bill because stakeholders are at war with each other on the issue.
The introduction of the Bill in Parliament has been postponed due to the lengthy thoughts and negotiations that have taken place, as well as the government’s anticipated attempt to reform the regulatory system.
Specifically, the paper states that “we must collaborate to define global norms for emerging technologies such as social media and cryptocurrencies so that they are utilized to support democracy rather than destroy it.”
“Prime Minister Modi stated on Friday that he was in the midst of ongoing conversations regarding cryptocurrency legislation.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was notified by the government immediately before the start of the winter session of Parliament, just days after a meeting of the Cabinet and representatives of the Reserve Bank of India was held.
So far, the following is what we know about the position of the Indian government on cryptocurrency regulation:
After meeting on Thursday, including the Reserve Bank of India, which has regularly expressed concerns over unregulated cryptocurrencies in India, PM Modi made the choice to take the ultimate decision.
According to Nirmala Sitharaman, the country’s finance minister, the government has modified a measure that supported banning all cryptocurrencies; however, the country has no plans to accept Bitcoin as an official currency, as previously indicated. She also cautioned against making predictions regarding the future measure, calling such speculation “unhealthy.” It has been confirmed by her that the government will prepare a Bill following thorough consultations before presenting it to Parliament.
According to the ET report, the numerous choices for the Bill “include a complete ban on private cryptocurrency, a partial restriction, permitting all sorts of crypto goods with regulation, or only a restricted number of crypto goods with regulations,” among others . The government, according to a second report from the Financial Times, is considering placing restrictions on exchange-to-exchange currency transactions. As reported by the New York Times, an outright ban on trade exchanges, as well as limits on wallets and Google Chrome extensions that conceal dealers’ identities, are all possibilities. T he government may also create its own digital currency
According to the Economic Times, India is also considering establishing capital market regulators to oversee cryptocurrency transactions and regulation.
According to sources cited by the Economic Times, the Indian government is considering building a system to track all inflows and outflows of the Indian rupee through Indian cryptocurrency exchanges. Only those exchanges that are able to open their ledgers for inspection by the government on a quarterly basis will be permitted to conduct business in the nation.
According to the article, bitcoin exchanges would be compelled to provide the government with quarterly financial statements in order to ensure openness.
According to the report, the central government is expected to give cryptocurrency investors a deadline by which they must register their holdings in order to be in compliance with the new regulations. Sources claim that anyone who violates the regulations might face a fine of up to 200 million rupees or a prison sentence of up to 1.5 years if found guilty. Cryptoassets, as defined by the Bill, are digital assets that are not backed by a central bank. The Reserve Bank of India’s ambition to develop a central bank digital currency is not included in the Bill.