The final draft of the revised cryptocurrency bill framework submitted to cabinet. Will it make it through parliament this time?
Highlights-
- Draft bill for crypto regulation moves to cabinet for high-level deliberations.
- PM Modi to make the final call on the proposal
- Various options included in the bill range from regulation of all private cryptocurrencies to total ban.
- PM Modi addresses global leaders with strong statements on the crypto industry at the Summit hosted by President Biden.
The fate of cryptocurrency in India is now in the hands of Prime Minister Narendra Modi. In a meeting held on Thursday, various stakeholders of the industry including Reserve Bank of India voiced their suggestions as to what the course of decentralized currency should be from here.
After the meeting that hosted conflicting views of the involved parties, PM Modi is to take a final call on the cryptocurrency bill draft.
Fate Of India’s Crypto Bill Now In Hands Of PM Modi — Investors Grow Restless.
Among the varying set of options, a few proposed by the regulatory authorities were complete ban on private cryptocurrencies, regulation of all categories of crypto, partial ban, etc.
The initial plan of the government was to put a complete ban on the cryptocurrency. However, the move has now been toned down to forming a regulatory framework that will be introduced in the winter session of the Parliament.
Cryptocurrency can never be a national currency in India…
If the story of El Salvador planted a seed of hope inside you, get over it. While the government still might be unsure on lot of things concerning crypto, one thing is crystal clear- crypto will not be accepted as a legal tender.
This is not all, the legislation has further replaced the word “cryptocurrency” with the term “cryptoasset“.
This is not the first time that the government would be introducing a bill for the “distributed ledger technology” in the winter session of parliament. It was also introduced in the last budget session however, it was not approved due to the need of rework.
The finalized draft bill will go under the deliberation of highest level before it is presented in the parliament.
Cryptocurrency bill draft- official digital currency on the way
While cryptocurrency might be far from getting the status of legal tender, it doesn’t mean that India won’t have a national digital currency. The draft bill has laid down the framework to facilitate the creation of an official digital currency that will be issued in the country by Reserve Bank of India.
What does this mean for the industry? It simply translates to administrations’ acceptance for the underlying technology behind decentralized currencies. However, private cryptocurrencies are highly likely to be prohibited.
If the Cabinet gives a green chit to the draft bill, it will then be presented before Parliament.
What does PM Modi think about cryptocurrency?
While the draft bill on the regulation of cryptocurrencies is ready, PM Modi gave a strong statement about the industry in a virtual summit hosted by US President Joe Biden-
“We must … jointly shape global norms for emerging technologies like social media and cryptocurrencies so that they are used to empower democracy, not to undermine it.”
By working together, democracies can meet the aspirations of our citizens and celebrate the democratic spirit of humanity. India stands ready to join fellow democracies in this noble endeavor,” he added.
In the Summit, he also emphasized on the role of cryptocurrency in monetizing the terror activities that are threatening to the democracies around the world. According to the reports, any such case involving use of cryptocurrency to fund terror ambitions would come under the provision of Prevention of Money Laundering Act along with amendments.
