The long-awaited Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 will be introduced by the Centre in the upcoming winter session.
As crypto markets spiral ahead of the introduction of a new Cryptocurrency bill is going to introduced. The Centre will give time to crypto investors to make an exit. As per sources, a window will be given to investors with money already in cryptocurrencies to take out investments. The ban on cryptocurrencies in India will only be activated after the window period is over.
The long-awaited Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 will be introduced by the Centre in the upcoming winter session of the parliament. According to an official document on scheduled house procedures, the bill will outlaw all private cryptocurrencies in India with ‘some exceptions’. It will be tabled before the Houses after November 29 and will be taken up for final consideration and passage during the time period. The Reserve Bank of India (RBI) will establish its own digital money since investor money security and deceptive media promotions on such investment have long been a source of concern, as per the document.
The bill will be introduced to “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI). The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”.
The bill follows months-long deliberations between the Centre and concerned Ministries. On November 13, PM Modi chaired a meeting on the way forward for cryptocurrency with a special focus on the issue of misleading non-transparent advertising regarding the same. As per sources, this meeting was conducted after a consultative process done by the Reserve Bank of India (RBI), the Finance Ministry and the Ministry of Home Affairs (MHA).
The news on the potential ban, however, has sent the crypto markets into a tizzy. The industry has urged the government to take a nuanced approach towards regulating crypto assets in India. Companies have asserted that India is home to the highest number of crypto owners in the world and a nuanced bill would help India become the global leader in crypto, Defi, and NFTs.