Government may not introduce Crypto Bill

Indian Government may not introduce Crypto Bill in Winter Session, instead, it will rework the Bill and will present it later. Let’s read more about this.

Introduction

The Government of India was all set to introduce the Crypto Bill 2021 in the winter  parliamentary session. This however, didn’t go as planned. The government is considering further consultation and discussion on this bill.

In an interview with Economic Times, an official from RBI revealed this news. “After several rounds of discussions at the highest levels, it was felt that any legislation surrounding cryptocurrency must be in tandem with a global framework which is still evolving. It might be a better strategy to wait and observe how this space evolves globally,” he said. “Also, it was felt that the government could consider existing laws and regulations to ensure consumer protection and taxing cryptocurrency transactions in the meantime,” he added.

Past statements and comments

Recently the government presented a proposal for punishments for violating the set rules. We published an in depth article discussing that. The government had planned to reward violators with a fine of ₹20 crores or a prison sentence of 18 months.

The decision to avoid rushing for a bill came after the need of more consultation for making robust laws. As the whole world is looking at Crypto regulations it’s better to carefully asses the surroundings and then act. Indian authorities are in no mood to rush for a bill only to see it fail.

The Prime Minister of India, Narendra Modi in a statement said that there’s a dire need to shape rules and regulations for social media and cryptocurrencies to make sure that no one is misusing them and instead using them to empower democracy, not undermine it. This statement came at the Summit for Democracy whose host was the President of United States.

Thoughts about CBDC

The government is still considering what to do with CBDC or Central Bank Digital Currency. “Since this is currency, it could possibly be regulated through the RBI Act,” said the official on CBDC.

As of now it’s unclear whether the government will act on CBDC or not.

Delays in legislature

The initial plan to introduce this bill was in the budget session, however, because of the need of more discussion the government opted to delay this. Instead, the government decided to introduce this bill in the winter Parliamentary session. Unfortunately, this idea is getting dropped as well.

Conclusion

It is a good news that the Indian government is carefully considering the bill without rushing it. Hopefully, we might see good and robust laws in the future which the world might adapt or get inspired to bring their own.

That’s the end of this article. We hope you liked this article. If you liked this article and want to read more such informative articles, click on this link. If you want to learn the basics of Cryptocurrencies and Blockchain Technology click here.

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