The Indian government has listed a cryptocurrency bill, which will be considered at the upcoming parliamentary meeting starting next week. The bill aims to ban cryptocurrencies, but there are some exceptions. It will also create a convenient framework for the digital rupees issued by the Reserve Bank of India (RBI).
The Indian government pushes for encryption legislation before the end of the year
According to the legislative agenda of the upcoming meeting announced on Tuesday, the Indian government has listed a cryptocurrency bill, which will be considered at the winter meeting of the lower house of the lower house of the Indian parliament.
The title of the bill is “Encryption and Regulation of the Official Digital Currency Act of 2021.” The government expects it to be proposed and approved at the same parliamentary session, which is scheduled to start on Monday, November 29 and will end on December 23.
According to the government’s description, the bill aims to “create a convenient framework for the creation of official digital currencies issued by the Reserve Bank of India. The bill also attempts to ban all private cryptocurrencies in India, however, it allows certain exceptions to promote cryptocurrencies. Basic technology and its use.”
This is the second time that the Indian government has included a cryptocurrency bill for parliamentary deliberation.In January, the government List the cryptocurrency bill Budget meeting. However, it was not adopted. The title of the bill and accompanying winter meeting description are exactly the same as the list of parliamentary budget meetings.
Policy 4.0 CEO Tanvi Ratna commented on the announcement of the cryptocurrency bill by the Indian government on Tuesday:
Yes, the government is expected to pass legislation at this session. However, it may not be a complete legislation.
She added: “Operational and implementation issues may only be debated at budget meetings.”
A senior government official told Reuters on Tuesday that the plan is to eventually ban private encrypted assets while paving the way for a new central bank digital currency (CBDC).
However, since the current encryption bill has not yet been made public, Indian encryption experts urge investors not to panic sell.
The only public bill is the original bill drafted by the Inter-Ministerial Committee (IMC) led by the former Secretary of Finance Subhash Chandra Garg. Published In July 2019, the title of the bill was “Prohibition of Cryptocurrency and Regulation of Official Digital Currency Act of 2019”, which is slightly different from the agenda set out in the upcoming parliamentary meeting.
The bill drafted by the Garg committee is considered outdated because the crypto ecosystem has undergone major changes since the bill was issued. Even Gag himself admitted that when the bill was drafted, cryptocurrency was seen more as a currency than an asset. He now believes that crypto assets should be regulated. “Regulate, control cryptocurrency, but allow crypto assets and encourage crypto services,” the former Minister of Finance Said in May.
Last week, Indian Prime Minister Narendra Modi urge All democracies work together on Bitcoin and cryptocurrencies to ensure that they do not fall into the wrong hands.he still Host Comprehensive meeting on encryption.In addition, the Standing Committee on Finance of the Indian Parliament Have a meeting With representatives from the encryption industry.
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