Government May Introduce Cryptocurrency Bill in Winter Session of Parliament

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The government will likely introduce a cryptocurrency bill during the winter session of Parliament which begins on November 29, when those currencies are said to be used to lure investors with misleading claims and to fund terrorist activities, they said. sources reported Monday.

Currently, there are no specific regulations or prohibitions on the use of cryptocurrencies in the country. Against this backdrop, Prime Minister Narendra Modi held a cryptocurrency meeting with senior officials on Saturday and it looks like strong regulatory action could be taken to address the issue.

The sources said the bill will focus on protecting investors, as cryptocurrencies fall under a complex asset class category.

Once cleared by the Union Cabinet, the government plans to introduce the cryptocurrency bill in the first week of the winter session.

In August, Finance Minister Nirmala Sitharaman said she was awaiting Cabinet approval on the cryptocurrency bill.

The government and the Reserve Bank of India (RBI) have expressed concerns about cryptocurrencies in recent months.

The three-week winter session is scheduled from November 29 to December 23.

On Monday, the Parliamentary Standing Committee on Finance discussed the pros and cons of crypto-finance with various stakeholders, and several members were in favor of regulating cryptocurrency exchanges rather than an outright ban on such exchanges. currencies, according to sources.

At the meeting called by the prime minister on Saturday, it was strongly felt that attempts to mislead young people with overly promising and non-transparent ads on cryptocurrencies should be stopped, sources said.

An inter-ministerial panel on crypto currency chaired by the Secretary (Economic Affairs) recommended that all currencies, except those issued by the state, be banned.

Previously, RBI had said that the unregulated growth of cryptocurrencies posed a threat to the country’s macroeconomic and financial stability.

Last week, RBI Governor Shaktikanta Das reiterated his views against allowing cryptocurrencies, saying they pose a serious threat to any financial system because they are not regulated by central banks.

The central bank is also planning to introduce an official digital currency.

On March 4, 2020, the Supreme Court quashed an RBI circular of April 6, 2018, prohibiting banks and entities regulated by it from providing services related to virtual currencies.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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