India is rumoured to be modifying its crypto bill in order to introduce it at the start of Parliament’s Winter Session.
India is now attempting to regulate cryptocurrency. According to the Economic Times, which cited an unnamed government source, the government is now examining a “middle way” to regulate cryptocurrency that balances all stakeholders’ concerns.
Given that a huge number of Indians are investing in crypto assets, an outright ban is not seen as viable, the individual noted, adding that declaring cryptocurrencies legal cash, as El Salvador did, is also not an option. A balance must be found, according to the source… It is more likely to pursue a middle course that balances the concerns of all stakeholders.
According to the publication, policymakers were recently given a presentation on cryptocurrencies, which included the finance ministry. It discussed the benefits and drawbacks of cryptocurrencies, as well as legislation in other countries, crypto investments by Indians, and the Reserve Bank of India’s (RBI) position on crypto. India’s central bank has stated several times that it has “severe concerns” about cryptocurrency, which it has shared with the government.
Another presentation on cryptocurrency taxation is scheduled, according to the source, who added that the crypto law will be forwarded to the Cabinet following legal vetting, which is expected to take place during the upcoming winter session of parliament which is about to begin on 29th of November.
In addition, according to CNBC-TV18, the Indian government is working on revising a planned cryptocurrency bill. Unnamed sources told the publication that the law is expected to be submitted at the start of parliament’s winter session.
The Indian Ministry of Finance released a draught bitcoin bill named “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill” in June of this year. All cryptocurrencies, with the exception of those issued by the government, should be banned, according to the report. A measure with a similar title was introduced in the Lok Sabha, India’s lower house of parliament, in January of this year. It was not, however, introduced.
Since then, various stories have suggested that the government of India is considering regulating cryptocurrency as an asset class rather than outright banning it. The head of India’s Parliamentary Standing Committee on Finance stated in September that the country’s cryptocurrency law will be “different and unique.”
Officials from the finance ministry are also attempting to “speed rush” a modified cryptocurrency bill, according to the news outlet.
Meanwhile, the RBI is developing a central bank digital currency (CBDC), with a digital rupee model expected to be unveiled by the end of the year. The state-backed digital currency will be released in stages.