The Parliament of India is about to consider a government-introduced bill that might ban private crypto assets in its upcoming budget session. Given the ruling party controls both houses of Parliament, the probabilities of the bill’s passage are quite good at this stage.
In line with the Lok Sabha Bulletin revealed earlier on Friday, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, seeks to ban all cryptocurrencies within India and offer a framework for creating a legal framework virtual currency to be issued by the RBI [Reserve Bank of India].
While the bill is anti-private cryptocurrencies, it’ll permit certain exceptions to market the underlying technology of cryptocurrency as well as its uses, the bulletin added. The India Parliament has three annual sessions: Budget session, which runs from January to March, Monsoon session, as well as Winter session.
If this bill is approved, India would become the sole major Asian economy to ban private cryptocurrencies instead of regulating them. A bitcoin by regulating it sort of corporate stock and officially recognize cryptocurrency-based crimes.
The RBI, via a circular issued on 6th April 2018, had banned regulated entities from dealing in cryptocurrencies as well as offering services for facilitating a person or entity in handling or settling those. The central bank’s banking ban was overruled by the Supreme Court earlier in the month of March last year, bringing cheer to exchanges offering services to India-based clients.
Sumit Gupta, CEO of the Mumbai-based CoinDCX exchange, struck a hopeful note relating the proposed legislation. “Since the govt. is considering introducing the bill during this session of Parliament, we are sure the govt will certainly hear all the stakeholders before taking any decision,” Gupta. “We are discussing other stakeholders and can definitely initiate deeper dialogue with the govt. & showcase how we will actually create a healthy ecosystem in unison.”