India’s crypto bill is unlikely to be discussed this month – and it may be some time before we see it in parliament

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India’s crypto bill has not been listed as one of the legislative issues to be discussed in the monsoon session of Parliament, which begins on July 19. According to IndiaTech CEO Rameesh Kailasam, the government is still in the process of determining whether or not to set up a new committee. The government is seeking common ground, not a total ban on cryptocurrencies, as proposed in the crypto bill that was due to be tabled in the budget session of Parliament earlier this year. India’s uncertainties regarding cryptocurrencies won’t go away anytime soon. Parliament’s monsoon session, due to begin next week on July 19, does not list virtual currencies as an issue that could “tentatively” be discussed.

“The likelihood that the bill will be tabled in parliament in the next session is limited,” Rameesh Kailasam, CEO of IndiaTech, told Business Insider. “The government appears to be still figuring out the way forward, which can be either through an existing committee or a new committee with industry consultation where appropriate.

Indian Finance Minister Nirmala Sitharaman hinted earlier this month that the crypto bill only needed Cabinet approval – the top decision-making body of the Indian government – before being submitted debate in Parliament. The absence of the bill from the list implies that either Cabinet did not have time to review the bill or it was referred to the Ministry of Finance for review.

And, according to Kailasam, India’s supreme banking institution – the Reserve Bank of India (RBI) – and the Indian government may no longer be on the same page.

“Considering that the Supreme Court had lifted the ban on cryptocurrencies and that it was subsequently incumbent on the RBI and the Indian government to put in place the necessary regulations. Therefore, a way of prohibition cannot be – not be ideally plausible, ”he said.

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There is a new committee to regulate emerging cryptocurrencies

Any regulation regarding cryptocurrencies will require the participation of several ministries. The previous committee, chaired by former finance secretary Subhash Garg, included stakeholders from the Ministry of Electronics and Information Technology (MeitY), the Securities and Exchange Board of India (SEBI), the Department of Business Economics (DEA) and RBI. .

“The government appears to be re-examining the issue given that there has to be a different approach on how to regulate cryptocurrencies rather than pushing for an outright ban,” Kailasam said. So if the bill is to be rewritten, a new committee must be set up. In May, the Economic Times also reported that a new panel could be set up to study India’s crypto regulations.

Once the members are finalized, the committee will then draft a new version of the bill, which will have to be approved by the Ministry of Finance and then by the Ministry of Law. And that’s when cabinet finally considers it. If cabinet wants revisions, the bill goes back to committee – but even if it approves it, it cannot simply go to Parliament. It must first be made available to the public and take into account any comments or suggestions.

It is only after he has managed to squeeze through all this bureaucracy that the bill can finally be listed for parliamentary approval.

The Indian government may be easing its stance on cryptocurrencies – RBI still uncertain In 2018 it was preventing banks from engaging in crypto transactions or providing crypto services – a ban that was annulled in 2020 by the Supreme Court, which found it “unconstitutional”.

However, the umbrella banking institution has refrained from giving its blessing to private cryptocurrencies. As a result, most of the country’s banks have also chosen to keep their distance from crypto exchanges and other services.

In March, during the budget session of Parliament, the government planned to introduce a bill that would allow the RBI to set up a centralized cryptocurrency while also banning all “private” cryptocurrencies.

“When the crypto bill was going to be introduced in the budget session of Parliament, the RBI and the government may have been on the same page,” Kailasam said. “But now – with the traction digital assets have gained over the past six months, detailed industry recommendations and the Supreme Court ruling to ‘not’ ban cryptocurrencies in the limelight – the government looking for a middle way with regulation. ”

The crypto industry has also been looking for new ways to contact the government, such as forming a second lobby under IndiaTech, to push for self-regulation.

For a more in-depth discussion, head over to Business Insider Cryptosphere – a forum where users can delve into all things crypto, engage in interesting discussions, and stay ahead of the curve.

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