The draught legislation on cryptocurrencies has been submitted before the Cabinet and is awaiting approval, according to Finance Minister Nirmala Sitharaman.
“Cabinet note is ready on cryptocurrency (Bill). I am awaiting Cabinet to clear that,” during a press conference on Monday, the minister informed reporters.
India has been on the brink of cryptocurrencies for a long time, slowly deciding whether to accept or reject them. An inter-ministerial group on cryptocurrencies, led by the Secretary of State for Economic Affairs, has already presented its report on the challenges surrounding virtual currencies and proposed specific steps.
It has proposed that all private cryptocurrencies, with the exception of state-issued virtual currencies, be banned in India.
The Reserve Bank of India (RBI) has also expressed worries about cryptocurrencies traded in the market, which it has addressed to the government.
On cryptocurrencies, RBI Governor Shaktikanta Das stated that there are no disagreements between the central bank and the Finance Ministry. He has stated that he had “reasons to believe” that the government shares the RBI’s “major concerns” regarding cryptocurrencies.
“We should now await the final decision on the matter” he had stated.
The Supreme Court permitted banks and financial institutions to resume services connected to cryptocurrencies in March, overturning the Reserve Bank of India’s 2018 circular prohibiting it.