The Indian government is likely to choose an alternative path on digital currencies as it finalizes the crypto bill in India that may be presented in the upcoming winter session of the Parliament. Several media houses have reported regarding the keenly watched piece of legislation as digital currency gains popularity among the youths of that country.
Indian Crypto Bill – November
“A balance has to be found”, the report states by citing a person, adding that a final call on the proposed law’s details would be considered shortly.
“A middle path that balances the concerns of all stakeholders is more likely.”
A person further added that the crypto bill 2021 would consider the developments in technology in the digital asset arena which was absent in the previous draft.
An upper level inter ministerial committee formed by the finance ministry has evaluated the legal framework and policy and suggested the introduction of the Central bank Digital Currency (CBDC) as a digital form of fiat currency in the nation.
The RBI (Reserve Bank of India) had banned digital currency but the order was struck down by the Supreme Court of India in March 2020.
The government which was discussed about regulating digital currency in India said that it is working with varied stakeholders. According to the Finance Minister, Nirmala Sitharam,
“The government was not against cryptocurrency and will instead look into ways it can help the country’s fintech sector”.
The watchdogs of the market had banned the investment advisers from advising on instruments that are unregulated that including digital currencies, digital gold, and other such commodities.
In October 2021, SEBI (Security Exchange Board of India) said,
“It has come to the notice of SEBI that some registered investment advisers are engaged in unregulated activity by providing a platform for buying/ selling/ dealing in unregulated products including digital gold.”
The cryptocurrency market in India widened by 641 per cent in the last year, boosting the growth of digital currencies in Southern and Central Asia as per reports. The digital currency market in Pakistan increased by 711 per cent last year, the report further stated.
Indian Crypto Bill – August
The government in August 2021 is predicted to take up the latest Indian crypto bill in our country, asserted Nirmala Sitaram, the Finance Minister of India. A report was submitted by the inter-ministerial panel which was led by former finance secretary Subhash Chandra Garg seeking a ban on the private digital currencies and authorizing a digital currency that will be issued by the RBI (Reserve Bank of India). Cryptocurrency meaning a digital form of currency that is different from our fiat currencies. Nothing is physical in digital currencies, it is completely operated digitally. Sitharaman then said,
“Cabinet note is ready on cryptocurrency bill. I am waiting for the Cabinet to clear that.”
She further added that,
“We are pleased to see that the government is pressing for crypto legislation. Emerging technologies such as blockchain and cryptocurrency, as well as AI and machine learning, hold the key to future economic prosperity.”
Conclusion
As per the latest report, the Indian government is likely to choose an alternative way for the use of digital currency in the country. This is when the proposal for CBDC (Central Bank Digital Currency) came to light. So if you are wondering when crypto bill will be passed, here is your answer. The new crypto bill 2021 India will be laid in front of the Parliament during the winter session.
Frequently Asked Questions On Crypto Bill Update
1. What is a Cryptocurrency bill in India?
The latest crypto bill would consider the developments in technology in the digital asset arena which was absent in the previous draft.
2. Is cryptocurrency illegal?
The legal status of cryptocurrencies depends from country to country. There are some countries that have accepted cryptos like Bitcoin as a legal tender while there are other countries that have banned the use of digital currencies.
3. Can you lose all your money in Crypto?
Cryptocurrencies operate on blockchains that are completely decentralized. So you do not have track of it. So if the exchange is hacked or the owner vanishes then you have a chance of losing all your money.
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