Recently there has been crypto discussion in parliament where the MPs (Members of Parliament), associations, and industry experts informed the parliamentary committee that was formed for finance that digital currency cannot be banned in India and the next thing is to find ways to regulate it.
The standing committee of the parliament met on Monday to discuss the present status of digital currency in India, the opportunities related around it and the challenges both the stakeholders and the government will have to face. The panel was led by Jayanta Sinha who happens to be a BHP leader and also the former Minister of State for Finance. Here are some cryptocurrency news India supreme court.
This crypto discussion in parliament was the first meeting on the topic of crypto finance that will be conveyed by the Parliamentary Standing Committee on Finance. Most of the parties who are associated in this discussion think that digital currency is here to stay and the aim should completely be on regulating it. The Indian government had plans to ban the digital currency around the same time in 2020, but scenarios have changed since then. The crypto investment in India has skyrocketed and it is becoming highly famous among youngsters.
As of now there is a lot of uncertainty revolving around digital currency in India, but after the meeting that was held on Monday offers us an idea about where everything is headed. 5 crucial things were discussed during the meeting. They are as follows.
Who Will Regulate Crypto In India?
Now this is not an issue of it but when. Indians will definitely have regulations for digital currencies, but how and when they are introduced is something that needs to be seen. The biggest point of discussion during the panel meeting of the parliament was who is going to regulate digital currency. The industry experts have left the appointment of a body entirely to the government. During the meeting, it was stated that the Reserve Bank of India (RBI) could look after digital currencies but previously it has mentioned that crypto in India should be banned. So with time we will find out whether there will be a new body to regulate digital currencies, or the government will appoint an existing body to monitor it.
Crypto Discussion In Parliament: A Bill Is Near
We have been hearing about the chances of an upcoming crypto bill for a long time. It is thought that the government has prepared one bill prior to the 2021 Union Budget. That bill had provisions to ban digital currencies. Of course that bill has been scraped and the latest bill seems to be under work. The same bill was highlighted during the meeting on Monday. It was said that the government is thinking of introducing a new crypto bill in the Winter Parliament Sessions first week. The bill may aim to offer more protection to the investors.
RBI Is Still Not Completely Convinced
In the recent crypto discussion in parliament the RBI (Reserve Bank of India) is still not completely convinced on the idea of digital currency. Before it was voiced on banning the digital currencies completely. Even at the time of meeting, the central bank was skeptical about the numbers that were presented by the crypto exchange platforms but said that there are other dimensions that need to be considered. Only a few days after the meeting took place, the governor of RBI asserted that digital currencies are a serious threat to any financial system since they are not regulated by the central banks.
Advertisements Are A Serious Issue
There has been a sudden increase in the advertisements from the crypto exchanges and it went unnoticed. Various media houses have previously highlighted how the digital currency exchange platforms are promoting Bitcoin or any other digital currencies as a method of earning quick money and are attracting youngsters to invest in them. This is a serious issue that was raised in the crypto discussion in parliament.
Investor’s Protection Is The Key
Most of the discussion was navigating around ensuring the protections of the investor. The representatives of digital currency exchange platforms informed the government that there are approximately 15 million crypto investors in the nation who have put in nearly Rs 600 crore in cryptocurrencies. The MPs asserted that the security of investors’ money is the most serious issue for all members.
The Bottom Line
Cryptocurrency is thought as the most crucial financial threat in the Indian economy presently. The government has tried numerous methods for crypto ban in India. So now it is planning to launch a new crypto bill that will regulate the use of digital currencies. In this respect there was a crypto discussion in parliament that made 5 points that needed to be taken care of in the Winter parliament Session. They are mentioned above.