The Indian government has finally presented a cryptocurrency bill. The bill, entitled “The cryptocurrency and the regulation of the official digital currency law 2021”, was listed for consideration in the current parliamentary session of Lok Sabha, the lower house of the Indian parliament. The aim is to create a framework for the official digital currency of India issued by the Reserve Bank of India (RBI) but to ban all cryptocurrencies.
The Indian government will introduce the cryptocurrency law in the current parliamentary session
After almost two years of waiting, the Indian government has finally presented a cryptocurrency bill. According to the Lok Sabha bulletin of January 29, the bill entitled “The cryptocurrency and the regulation of the official digital currency law 2021” will be listed for consideration in the current parliamentary session. Parliament’s budget session started on Friday and ends on April 8th with a break between February 15th and March 8th. The Union budget will be presented on February 1st.
The bulletin lists the bills that the Government of India sent for inclusion during the budget meeting. Below is the cryptocurrency bill, the description of which is:
Creating a framework for [the] Creation of the official digital currency to be issued by the Reserve Bank of India. The bill also aims to ban all private cryptocurrencies in India. However, it provides certain exemptions to promote the underlying technology of the cryptocurrency and its uses.
The section in the Lok Sabha bulletin that lists the cryptocurrency bill listed in the budget meeting for “Introduction, Examination and Dissemination”. Source: Lok Sakhas Bulletin.
The Mint publication states: “In the Legislative Order for the 17th Lok Sabha budget meeting that began today, the government has enacted a bill banning all private cryptocurrencies in India such as bitcoin, ether, ripple and others. ”
This law banning cryptocurrencies is similar to the bill on crypto drawn up by an inter-ministerial committee (IMC) led by former finance secretary Subhash Chandra Garg. This February 2019 bill was presented by the Ministry of Finance in July 2019. He proposes banning all private cryptocurrencies and foresees the creation of a central bank digital currency (CBDC), the digital rupee. Garg has since resigned from his government work and the Treasury Department has so far been silent about the bill.
On Monday, the Reserve Bank of India (RBI) published a brochure on India’s Payment Systems recognizing the popularity of cryptocurrencies. The central bank also confirmed that it is “exploring the possibility of whether a digital version of the fiat currency is required and how it can be operationalized if it is.” In December, the Treasury Department reportedly considered introducing a goods and services (GST) tax of 18% on Bitcoin transactions.
First introduction of the Crypto Bill in Parliament, reaction of the Crypto Community
Although there have been reports of the Indian government planning to ban cryptocurrencies, this is the first time a law banning crypto has been listed for consideration in Lok Sabha.
The Indian crypto community disapproves of the government’s decision. “This is crazy,” wrote one Twitter user. Another warned that the RBI had better not ban Bitcoin, stating that “the crypto bill should not be a FUD at this point or India will miss the momentum and innovation in decentralization”.
India’s Wazirx crypto exchange CEO Nischal Shetty said, “A country as large as India should at least work to understand the underlying terminology before putting technology-related bills in parliament. Seems like a hasty move. If done wrong, it can potentially destroy much of the value that the general public possesses. “He added,” Let’s hope this is a precursor to positive crypto rules, “stressing:
Just because an invoice is presented does not mean that it will be deleted … Wrong or hasty regulations will set us back by a decade. The right regulations will catapult India to the forefront of this technology.
“We have executives who are technologically capable and who will definitely pose problems in this regard,” believes the CEO.
Neeraj Khandelwal, co-founder and chief technology officer at Coindcx, another Indian cryptocurrency exchange, pointed out that it is estimated that more than five million Indians have total Bitcoin fortune totaling $ 10 billion, which equates to 2% of India’s foreign exchange reserves crypto can bring billions of dollars in taxes for the Indian government. “He repeated,” Previous attempts to ban Bitcoin in India have been unsuccessful. The industry survived two years during the banking ban imposed by the RBI. “
The news of India’s crypto ban came after Bitcoin prices spiked after Elon Musk, CEO of Tesla, changed his Twitter profile to “#bitcoin” and tweeted, “In retrospect, this was inevitable.”
Do you think India will ban crypto? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Government of India
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