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Cryptocurrency May Not Face Complete Ban In India. Known More About This
The government had earlier suggested that it will not impose an outright ban on cryptocurrency in India. A report suggests that the government is likely to appoint a panel of experts to explore how virtual coins can be regulated.
Cryptocurrency may not face a complete ban in India as a report indicates that the government is likely to set up a panel of experts to study the possibility of regulating it. Earlier, the government had intended to come out with a bill to ban all kinds of decentralised cryptocurrencies in the country.
An Economic Times report, quoting three sources aware of the fresh discussion, suggested that a panel of experts is likely to study the subject and determine whether regulating cryptocurrencies is a better option than a complete ban.
Several cryptocurrency exchanges in the country have urged the government to regulate virtual coins rather than completely banning them. In the recent past, the government has also dropped hints that it may not go for a complete ban on cryptocurrencies.
According to the report, the fresh development comes at a time when many feel that the recommendations of the committee headed by former finance secretary Subhash Garg in 2019 for a blanket ban on these had become outdated.
WHAT WILL THE NEW COMMITTEE STUDY?
The new committee is likely to explore whether the use of blockchain can be leveraged for technological advancement, and suggest ways to regulate cryptocurrencies as digital assets.
The ET report indicated that the committee may also be asked to find ways to operationalise the Reserve Bank of India’s (RBI) proposed digital rupee.
“There is a view within the government that the recommendations made by the Subhash Garg are dated and a fresh look is needed at use of cryptos rather than a total ban,” an official quoted in the ET report said.
However, these discussions are still at an early stage and no official resolution has been passed yet.
The government is currently looking at volumes of growing cryptocurrency trade in the country and talking to stakeholders for understanding supervisory risks, the report added.
Later this month, a team is likely to brief Finance Minister Nirmala Sitharaman regarding the ongoing developments in the cryptocurrency space as the volume of virtual coin trade grows in India.
It may be noted that Nirmala Sitharaman had earlier indicated that the government is not looking to impose an outright ban on cryptocurrencies.
The government was expected to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the Budget Session of the Parliament in March. However, it was deferred. The ET report indicates that the bill could be tabled in the upcoming monsoon session.
The original bill was expected to criminalise the trading and holding of cryptocurrency assets. However, it received resistance from a growing community of crypto traders in the country.
While modifications are now expected to the bill, it remains to be seen how the government plans to regulate cryptocurrency trade in the country.
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