The Indian government is all set to introduce a new Crypto Bill proposing a ban on all “private cryptocurrencies” in Parliament during its ongoing winter session. While it is not clear when the government will introduce the Bill, it is likely to be in the coming days. However, the country’s Finance Minister, Nirmala Sitharaman today stated that the government will introduce the bill in the House after cabinet clearance.
“This is a risky area and not in a complete regulatory framework,” the Minister was quoted by The Indian Express. “Steps are taken to create awareness through RBI (The Reserve Bank of India ) and SEBI (The Securities and Exchange Board of India). The government will soon introduce a Bill.”
What is the Indian Crypto Bill?
The government announced the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’, on November 23. Soon after, the crypto prices crashed as panic-stricken people began selling cryptocurrencies. According to reports, major cryptocurrencies fell around 25% on Novemebr 24.
The Bill aims to “prohibit all private cryptocurrencies in India”. However, it “allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”. Furthermore, the Bill has provisions to create a framework for creating an official digital currency issued by RBI.
Additionally, Sitharaman today said that the Centre is also considering the regulation of NFTs. She added that the government is also monitoring the risk that “cryptocurrencies can lead to undesirable activities.”
India is not the first to come up with plans to regulate cryptocurrencies and NFTs. Last month, South Korea announced its plans to tax crypto trading profits. While it had initially exempted NFTs from tax, it changed its stance last week.