The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which was mentioned by the government as vital items for the Winter Session, may not be introduced in the current session, giving crypto traders and investors a respite. The administration is considering adjustments to the proposed legislation’s structure, which means it may not be submitted during the Winter Session.
Some concerns raised by the law require more study and input from the public. The incorporation of the Central Bank Digital Currency (CBDC) in the present framework or under the RBI Act is one example.
The administration believed that any legislation relating to cryptocurrencies should be in line with a global regulation still growing after discussions with high levels, according to the article, which cited an anonymous government official.
“It would be wiser to wait and see how the global situation develops,” they suggested. Existing rules, on the other hand, may be used to protect consumers and tax Cryptocurrency, it was believed.
Prime Minister Narendra Modi urged coordinated efforts to establish social media standards and cryptocurrencies, ensuring use to “empower democracy” rather than “undermine it” at the Democracy Summit presented by US President Joe Biden.
Any possible Cryptocurrency framework, according to the official, should be developed after considering all stakeholders in the context of a developing global nod on the subject.
The administration is also debating whether or not the draught framework of the crypto law should take precedence over the CBDC. According to the government, the new digital money may also be managed under the RBI Act.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was initially scheduled for debate and passage during Parliament’s Budget session earlier this year, but the administration chose to revise it before bringing it to the floor.
As previously reported, the government is considering measures such as appointing the Securities and Exchange Board of India (Sebi) to supervise the space since it wants to designate it as a financial asset.
The government had planned to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, during the winter session, which began on November 29. However, Sitharaman assured Parliament that the bill would be introduced after cabinet clearance.