Nirmala Sitharaman, India’s finance minister, said on Monday that the government was working on new cryptocurrency legislation, she also hinted that in the bill, investors may have an exit option.
The Union Cabinet is expected to pass legislation soon to regulate cryptocurrencies and their expanding sector in India.
Although cryptocurrency will not be openly banned, it will not be acknowledged as legal tender. It’s increasingly likely that cryptocurrency will be recognized as a marketable asset class.
The proposed cryptocurrency law has been submitted to the Cabinet and is awaiting approval, according to Ms. Sitharaman.
“Cabinet note is ready on cryptocurrency (Bill). I am awaiting Cabinet to clear that,” she told reporters during the interaction.
India has been on the fence about cryptocurrencies for a long time, cautiously determining whether to accept or reject them.
When it comes to cryptocurrency, Sitharaman has previously expressed her opinions. She has stated that the government does not intend to eliminate all possibilities and that people would be given adequate opportunity to experiment with blockchain technology, bitcoins, and cryptocurrency.
A study on cryptocurrencies was provided by an inter-ministerial panel directed by the Secretary of State for Economic Affairs.
According to the research, all private cryptocurrencies should be banned in India, with the exception of those issued by the government.
India’s central bank, the Reserve Bank of India (RBI), has raised a similar concern about the cryptocurrency industry.
According to RBI Governor Shaktikanta Das, there are no differences between the central bank and the Finance Ministry when it comes to cryptocurrencies.
According to him, the government shares the RBI’s “serious worries” about cryptocurrency. He had added, “We should now await the Centre’s ultimate conclusion on the case.”
The bill is scheduled to be submitted in the Winter Session of Parliament if it is approved by the cabinet between now and November.
It’s worth mentioning that, despite India’s severe position on digital assets, Ethereum co-founder Vitalik Buterin’s donation to the India Covid Crypto Relief Fund resulted in a $20 million payout from the approximately $1 billion in cryptocurrencies submitted.
The funds were distributed to food-related groups across the country, including 10 Bed ICU, which is dedicated to establishing mini-intensive care centers in rural areas for patients with severe Covid-19 cases.
