PM Modi recently chaired a high-level meeting with officials from various ministries and the RBI on the topic of cryptocurrency during the Winter Session.
New Delhi, India:
During the Winter Session, which begins on November 29, 2021, a Bill to prohibit all private cryptocurrencies in India with limited restrictions is scheduled to be taken up for final review and passage. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is one of 26 new bills on the government’s legislative agenda, out of a total of 29. “To build a conducive framework for the creation of the official digital currency to be issued by the Reserve Bank of India,” the government said.
The Bill also aims to outlaw all private cryptocurrencies in India, with some exceptions to promote cryptocurrency’s underlying technology and applications.
This comes just a week after the first-ever Parliamentary panel discussion on the broad contours of crypto finance, during which it was agreed that while cryptocurrencies cannot be halted, it must be regulated.
On November 16, the BJP’s Jayant Sinha presided over a meeting of the standing committee on finance, which included members from crypto exchanges, the Blockchain and Crypto Assets Council (BACC), industry organisations, and other stakeholders.
Investor money security and deceptive media promotions about investment potential and risks have long been a source of concern. The administration has convened a number of discussions with all stakeholders to examine digital currency regulation. On the subject, Prime Minister Narendra Modi convened a high-level conference with officials from various ministries and the Reserve Bank of India.
Concerns have been expressed by the Reserve Bank of India and the Securities and Exchange Board of India concerning the unregulated expansion of cryptocurrencies in India, with vulnerable ordinary investors in mind.
“In terms of crypto, we have severe worries about macroeconomic and financial stability. How the situation should be handled – we have made thorough recommendations to the government; as far as I am aware, the topic is being actively considered by the government, and the government will make a decision “At a press conference, RBI Governor Shaktikanta Das stated.