The much-awaited Cryptocurrency bill, which was supposed to be introduced by the central government during the winter session, has now halted.
According to an official from the senior government, the administration is exploring revisions to the planned Cryptocurrency system. As a result, it is possible that it will not be tabled in the upcoming winter session of parliament.
The need for further public participation and feedback, as well as whether the Reserve Bank of India’s proposed Central Bank Digital Currency (CBDC) should be included in this bill or handled under the RBI Act, are among the concerns being contested. The government seeks more time to ensure there is no mistake later.
Following numerous rounds of high-level conversations, it was determined that laws relating to cryptocurrencies must be consistent with a global framework that is currently evolving. “Waiting and seeing how this area grows worldwide would be a better option.
At the recent Summit for Democracy that was hosted by US President Joe Biden, PM Narendra Modi urged for a concerted effort to set global rules that can control and monitor cryptocurrencies and social media, ensuring they are only used for the empowerment of democracy rather than destroy” it.
As the Cryptocurrency regulation worked in its early stages throughout the world, Indian law should not be hurried but rather created after extensive input.
Regulation for CBDC
Policymakers are debating whether the CBDC should be included in the draft law. Because this is currency, it may be controlled under the RBI Act.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is scheduled for debate during parliament’s current winter session. It was also on the agenda for the last budget session, but it was unable to be tabled because the administration opted to revise it.
The Securities and Exchange Board of India (Sebi) would be appointed to regulate cryptocurrencies because the government has the view that they are financial assets. Another was setting a deadline for crypto holders to declare their holdings and comply with any new restrictions. The law is expected to use the word ‘crypto assets’ rather than ‘cryptocurrencies’ and would impose a 1.5-year prison sentence or a fine of Rs 20 crore for violations.