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The Indian government has indexed 26 Bills for the approaching winter session of Parliament which is set to start on November 29, and amongst those is the much-talked-about bill to adjust and limit cryptocurrency within the country.

According to the reports, the Cryptocurrency and Regulation of Official Digital Currency Bill seeks to prohibit all types of cryptocurrencies, however some private cryptocurrencies would not be banned to promote underlying technologies while allowing an official digital currency by the RBI. The information led crypto stakeholders to induce the Centre on taking a “nuanced approach” closer to regulating crypto assets in India. 

Where does India stand? 

By and large, the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' seeks to "create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI)".

– 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".

– Currently, there is no regulation or any ban on the use of cryptocurrencies in the country, but Prime Minister Narendra Modi met senior officials earlier in November to discuss the issue and “indications are strong” that regulatory steps will come, PTI added.

– There has been a rising number of advertisements, featuring even film stars, promising easy and high returns on investments in cryptocurrencies in recent times, amid concerns over such currencies being allegedly used for luring investors with misleading claims.

– Last week, the Standing Committee on Finance, chaired by BJP member Jayant Sinha, met the representatives of crypto exchanges and BACC, among others, and arrived at a conclusion that cryptocurrencies should not be banned, but it should be regulated.

– The RBI too has repeatedly reiterated its strong views against cryptocurrencies saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them as well as their claimed market value.

– RBI Governor Shaktikanta Das has also reiterated his views against allowing cryptocurrencies, saying they are a serious threat to any financial system since they are unregulated by central banks.

– Further, the RBI had announced its intent to come out with an official digital currency, in the face of proliferation of cryptocurrencies like Bitcoin about which the central bank has had many concerns.

– A pan-India survey by LocalCircles found that around 54 percent of people interviewed did not favour legalising cryptocurrencies, but instead wanted them to be treated as digital assets held overseas. The study received over 56,000 responses from people in 342 Indian districts.

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Niya Anil

Niya Anil