The government might enact the crypto bill through an ordinance after parliament dropped it from its upcoming session.
The Indian government is yet to finalise the details of legislation before finalising the much-awaited cryptocurrency bill in the parliament. The government has decided to hold wider consultations prior to finalising the rules for regulating digital currencies. Also, the cabinet has not approved the proposed legislation as there isn’t enough time. The current session is slated to end on December 23.
No spokesperson from the finance ministry was available for a comment on the same. Last week’s parliament session schedule has, however, dropped the cryptocurrency bill from their list of bills to be presented in the parliament. There are high chances that the government might bring this bill in the legislation through an ordinance.
The cryptocurrency bill will help the central bank to create an official digital currency. Also, RBI proposed to prohibit all cryptocurrencies in India. It also proposed to allow for certain exceptions that will promote certain exceptions stating cryptocurrency technologies and their uses.
The Need for a Crypto Bill in India
With a population of 1.4 billion people, India is one of the growing markets for cryptocurrency. The trading for cryptocurrency in the country had a hot and cold relationship with virtual coins. In 2018, the central bank banned crypto transactions, but the Supreme Court lifted the restrictions last year.
The cryptocurrency market calls for more strict rules. The amid concerns are that an unregulated domestic government may draw more domestic household savings than the volatile assets. However, there has been tremendous growth in the crypto market in India.
Our Finance Minister, Nirmala Sitharam, has said that the government will rework the bill. Although the Reserve Bank of India has called to ban cryptocurrencies, the government is considering allowing them. However, the government will allow cryptocurrencies only in the form of financial assets. The centre is yet to offer any concrete comments on the trading of cryptocurrencies.