Top sources on Wednesday said that the government will not bring a bill regarding cryptocurrency to Parliament’s winter session.
They suggested that a bill be brought to the attention of the parliamentary standing commission for further deliberations with stakeholders.
The bill was included in the government’s legislative activity of the winter session. It seeks to “create an facilitative framework for creating the official digital currency to issue by the Reserve Bank of India”.
It also seeks out to ban all private cryptocurrencies from India. According to the Lok Sabha website, the bill “allows for some exceptions to promote underlying technology and cryptocurrency’s uses”.
Sources said that it was unlikely that the bill would be introduced in the winter session.
There is currently no ban or regulation on cryptocurrency use in the country.
This is why Prime Minister Narendra Modi held a meeting last month on cryptocurrency with high-ranking officials. There are indications that strong regulatory steps could possibly be taken to address the issue.
In recent years, there have been increasing numbers of advertisements featuring actors promising high returns on investments in cryptocurrency. This is despite concerns that such currencies could be used to lure investors with false claims.
Jayant Sinha (BJP member) chaired the Parliamentary Standing Committee on Finance and met representatives from crypto exchanges, blockchain, and Crypto Assets Council (BACC). They came to the conclusion that cryptocurrencies should not been banned, but should be regulated.
The RBI has reiterated its strong opinions against cryptocurrency, saying that they pose serious threats for the country’s macroeconomic stability. They also doubted the market value of cryptocurrencies and the number of investors who trade on them.
Shaktikanta Das, the RBI Governor, had also reiterated his opposition to cryptocurrencies earlier in the month. He stated that cryptocurrencies are a serious threat for any financial system because they are not regulated by central banks.
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