The Indian government could make a legislative link to pass a recently proposed bill to regulate digital currencies in the country.
According to a report by the CNBC-TV18 news agency, the Indian government could go down the “regulatory path” to ban the use of private cryptocurrencies in the country and create a legal framework for a digital rupee issued by the Reserve Bank of India. In order to pass the measures within the proposed crypto law using this method, Indian President Ram Nath Kovind would have to issue an ordinance when parliament is not in session.
The news agency said the relevant parties had already started working on a draft regulation to introduce the crypto law “within a month” of its publication. Unlike bills passed through parliamentary laws, ordinances usually allow the Government of India to take immediate legislative action.
“[The government wants] This bill needs to be resolved as soon as possible, ”said Timsy Jaipuria, reporter for CNBC-TV18. “We’ll have to see how quickly the government works and this regulation will be clarified.”
The proposed legislation, cryptocurrency and the regulation of the official digital currency law, is currently under review in the Upper House of India’s Parliament as part of its budget session, which runs until April 8, but has a break between February 16 and March 7 inserts. President Kovind has the power to pass regulations during parliamentary recess, which means India could potentially put a crypto ban as early as March.
Although the bill states that “all private cryptocurrencies will be banned in India,” it also states that “certain exceptions will be made to promote the underlying technology of the cryptocurrency and its uses”. Kumar Gaurav, CEO of Cashaa, said he believed the legislation was an attempt to prevent illegal activity in the industry rather than banning crypto entirely.
The Indian government has largely not taken a firm position on digital currency regulation since the Reserve Bank of India lifted a general ban in March. However, since August, reports, citing sources within the government, have indicated that parliament is considering a new law banning crypto trading in India. The central bank has also announced that it will look into the possibility of a digital rupee.
