India’s Finance Minister Nirmala Sitharaman has answered some questions about cryptocurrency in Rajya Sabha, the upper house of the Indian Parliament. The questions include measures the government wants to impose on the crypto industry.
Finance Minister Nirmala Sitharaman answers crypto questions in parliament
The Indian finance minister answered four questions on “trading in cryptocurrency” in Rajya Sabha on Tuesday, including the measures described in the crypto bill.
Minister Sushil Kumar Modi asked the Treasury Secretary whether “a ban on Bitcoin trading was imposed in 2018” which was later lifted by the Supreme Court, whether other cryptocurrencies are still banned, and whether “despite the ban, illegal trading in cryptocurrency is still banned still carried out on a large scale. “
In response to these questions, Finance Minister Nirmala Sitharaman replied: “Given the risks associated with virtual currencies (VCs), including bitcoins, the Reserve Bank of India (RBI) advised all of regulated companies in its April 6, 2018 circular. No VCs are allowed to trade or Services are provided to make it easier for people or organizations to deal with or process VCs. “She confirmed:
However, the ruling of the Supreme Court of March 4, 2020 had overturned the above circular of April 6, 2018.
The final question is, “By when does the government propose to have strict policies in place on this in order to keep an eye on the risk involved?” The finance minister gave a long answer, similar to the first part of one of the replies the Minister of State for Finance, Anurag Thakur, had given last week.
Speaking in the 2018-2019 budget speech, Sitharaman said, “The government is not considering legal tender or coin for cryptocurrencies and will take all measures to stop the use of these crypto assets to fund illegitimate activities or as part of the payment system. The government will proactively examine the use of blockchain technology to usher in the digital economy. ‘“
She continued talking about the recommendations of the High Level Inter-Ministerial Committee (IMC), which was formed under the chairmanship of the Secretary (Economy) to examine the issues related to VCs and propose concrete action on this matter. This committee was chaired by Subhash Chandra Garg, who has resigned from the government. The Treasury Secretary said the committee “recommended in its report that all private cryptocurrencies, except for all government-issued cryptocurrencies, should be banned in India,” adding:
The government will take a decision on the IMC’s recommendations and the legislative proposal, if any, will be brought up to Parliament through due process.
The Indian government has answered a few more questions about cryptocurrency and whatever measures it wants to impose on the industry since it listed the bill in Lok Sabha, the lower house of India’s parliament. The bill aims to ban cryptocurrencies while at the same time creating a legal framework for the issuance of the digital rupee by the central bank RBI.
However, the bill was not made public, creating great confusion about the status of the bill and the related bans. Some suggest that it could be very similar to the one presented by the Garg Committee.
Last week in Rajya Sabha, Minister of State for Finance Anurag Thakur answered questions about the government’s stance on cryptocurrency and the digital rupee. Then, on Tuesday, he answered more crypto questions and confirmed that the crypto bill is being finalized and will be sent to the cabinet soon.
What do you think of what the finance minister said about cryptocurrency? Let us know in the comments below.
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