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Wednesday, December 08, 2021

Govt to table bill on cryptocurrency and seek ban on all private cryptos with exemptions

The Bill pertaining to the cryptocurrency seeks to create a facilitative framework for the creation of the official digital currency, which will be issued by the Reserve Bank of India.

By: Express Web Desk | New Delhi |
Updated: November 23, 2021 9:31:30 pm
The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions. (File Photo/Reuters)

The government is set to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the winter session of Parliament, which will be held from November 29 to December 23.

According to the Lok Sabha’s agenda, the government will be introducing and deliberating on 26 new Bills during the session. The Bill pertaining to the cryptocurrency seeks to create a facilitative framework for the creation of the official digital currency, which will 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,” the document read.

Earlier this month, a meeting chaired by Prime Minister Narendra Modi had reached a consensus that the government needs to take “progressive and forward-looking” steps while ensuring that an unregulated crypto market does not lead to “money laundering and terror financing.” Sources said that concerns were raised over what was seen as “attempts to mislead the youth through over-promising” and “non-transparent advertising.”

Three days after the PM’s meet, RBI Governor Shaktikanta Das had pointed out “serious concerns on macro-economic and financial stability” regarding cryptocurrencies. “I’m yet to see serious, well-informed discussion in the public space on these issues,” he had said during a banking conclave.

Meanwhile, industry executives at a Parliamentary Standing Committee on Finance, which met on November 15, noted that there are a total of around 15 million active subscribers on their exchanges in India, with the outstanding value across the exchanges pegged around $6 billion.

Several committee members had favoured regulating cryptocurrency exchanges and were against banning it. Sources said the Committee hasn’t formed any views on the subject yet and expects that the government would refer to it the proposed legislation in this regard.

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