Govt to table bill on cryptocurrency and seek ban on all private cryptos with exemptions
In the winter session of Parliament, which runs from November 29 to December 23, the administration plans to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.During the session, the government will introduce and debate 26 new Bills, according to the Lok Sabha’s agenda. The cryptocurrency bill aims to build a framework that would make it easier to launch an official digital currency that will be issued by the Reserve Bank of India.”The Bill also attempts to prohibit all private cryptocurrencies in India,” according to the document. “However, it allows for specific exclusions to promote cryptocurrency’s underlying technology and usage.”
A meeting headed by Prime Minister Narendra Modi earlier this month came to the conclusion that the government must take “innovative and forward-looking” actions to ensure that an unregulated crypto market does not lead to “money laundering and terror financing.” Concerns were expressed, according to sources, over “attempts to deceive the youth through over-promising” and “non-transparent advertising.”RBI Governor Shaktikanta Das had raised “severe concerns about macro-economic and financial stability” about cryptocurrencies three days after the PM’s meeting. During a banking conclave, he observed, “I have yet to see real, well-informed discussion in the public domain on these concerns.”
Meanwhile, industry leaders told a Parliamentary Standing Committee on Finance meeting on November 15 that their exchanges in India have a total of roughly 15 million active customers, with a total outstanding value of around $6 billion.Several members of the committee favoured regulating cryptocurrency exchanges rather than outlawing them. According to sources, the Committee hasn’t formed any opinions on the matter yet and expects the government to refer the draught law to it.
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