- Oct 25, 2021
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Indian Government Pushes for Crypto Legislation Before Year-End
The Indian government has listed a cryptocurrency bill to be taken up in the winter session of Lok Sabha, the lower house of India’s parliament, according to the legislative agenda for the upcoming session released Tuesday.
The title of the bill is “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021.” The government expects it to be introduced and passed in the same parliamentary session, which is set to commence on Monday, Nov. 29, and will conclude on Dec. 23.
According to the government’s description, the bill aims “To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
This is the second time the Indian government has listed a cryptocurrency bill to be taken up in parliament. In January, the government
Tanvi Ratna, CEO of Policy 4.0, commented on the news of the Indian government listing the crypto bill Tuesday:
Yes, it’s expected that the government will pass legislation in this session itself. However, it may not be a complete legislation.
She added: “Operational & implementation questions are likely to be debated in the budget session only.”
Ratna believes that cryptocurrencies like bitcoin (
A senior government official told Reuters Tuesday that the plan is to ban private crypto assets ultimately while paving the way for a new central bank digital currency (CBDC).
The RBI has previously said that it is working on a digital rupee, which is expected to be
However, since the current crypto bill has not been made public, Indian crypto experts have urged investors not to panic sell.
The only bill that has been made public is the original one drafted by the inter-ministerial committee (IMC) headed by former Finance Secretary Subhash Chandra Garg.
The bill drafted by the Garg committee has been seen as outdated as the crypto ecosystem has significantly evolved since the bill was published. Even Garg himself admitted that when the bill was drafted, crypto was viewed more of a currency, rather than an asset. He now believes that crypto assets should be regulated. “Regulate, control cryptocurrencies but allow the crypto assets, encourage the crypto services,” the former finance secretary
Last week, Indian Prime Minister Narendra Modi
Do you think India will ban cryptocurrencies like bitcoin and ether? Let us know in the comments section below.