Indian government postpones introduction of cryptocurrency bill in winter session of parliament

By | December 21, 2021

Government sources have stated that the highly anticipated encryption bill is unlikely to be introduced during the current winter session of parliament. The Indian government has yet to finalize all the details on the legislation. As it stands, it is highly unlikely that the bill will be introduced during the current session.

Crypto Bill is not on the agenda

The bill on cryptocurrencies and regulation of the official digital currency no longer appears on the parliament’s agenda for the remainder of the session and is not among the seven bills to be discussed during the remainder of the winter session.

Initially, lawmakers were ready to vote on the bill designed to create an “enabling framework for the creation of the official digital currency” issued by the RBI, the country’s central bank. The bill also proposed to ban certain private cryptocurrencies, but so far, it has yet to be voted on, and the legal status and regulatory framework around digital currencies are still uncertain.

A broader consultation is needed

The Indian government is looking to conduct more comprehensive inquiries on cryptocurrencies and the proposal bill with all stakeholders before deciding on your course of action. While the government would have liked to finalize the rules of the crypto space and digital currencies during the current session, the winter session ends on December 23, leaving the government with little time to wrap up discussions.

India’s Supreme Court had also overturned a blanket cryptocurrency ban imposed by the RBI. Since that trial, speculation has abounded that the Indian government is considering various proposals to regulate cryptocurrencies and other digital assets in India, with the media also mentioning a complete ban.

Will there be an ordinance?

If parliament in fact postpones the cryptocurrency bill, we could see the president of India issue an ordinance to address cryptocurrency legislation when parliament is not in session. The ordinance would essentially speed up legislation and could be introduced anytime between December and January.

While there is considerable speculation and confusion surrounding the bill, if the Ministry of Finance sources are to be believed, the government could classify cryptocurrencies as closer to assets than commodities.

India has a significant population invested in cryptocurrencies, and any potential ban or the regulatory effort could create ripples in the broader cryptocurrency space. When the bill was brought up as one of the items on the parliamentary agenda, the popular crypto exchange WazirX experienced a significant sell-off, resulting in a considerable drop in the price of BTC, ETH, and other cryptos.

Uncertainty around India’s crypto space

While cryptocurrencies are very popular with young people in India, a opinion poll conducted by LocalCircles has revealed that 71% of Indians have little or no confidence in digital currencies, according to their survey. However, IMF Director Gita Gopinath has called on India to maintain a complacent crypto policy.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice..


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