Nirmala Sitharaman: No Proposals To Recognised “Bitcoin” As A Currency

KEYPOINTS

  • Finance Minister Nirmala Sitharaman stated that the government has no intentions to recognise Bitcoin as a currency in the country.
  • This comes as the government prepares to present the Cryptocurrency and Regulation of Official Digital Currency Bill.
  • The bill aims to outlaw all but a few private cryptocurrencies in order to foster underlying technology.

Finance Minister Nirmala Sitharaman said Monday in response to a question in the Lok Sabha that the government has no plans to recognise Bitcoin as a currency in the nation.

She also told the Lok Sabha that the government doesn’t track Bitcoin transactions. “No, sir,” the Finance Minister said when asked if the government had considered recognising Bitcoin as a currency in the country.

“PRIVATE CRYPTOCURRENCIES” TO BE BAN

This comes as the government prepares to present the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in Parliament’s current Winter Session.

The bill aims to outlaw all but a few private cryptocurrencies in order to foster underlying technology while allowing the RBI to create an official digital currency.

“Government does not gather information on cryptocurrency trade,” said Pankaj Chaudhary, Minister of State (MoS) in the Ministry of Finance.

In response to another question from member of parliament Adoor Prakash, MoS Chaudhary said, “Government has received a proposal from Reserve Bank of India in October, 2021 for amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form.”

In India, cryptocurrencies are unregulated. RBI has advised its regulated entities to continue to carry out customer due diligence processes. According with RBI’s regulations governing standards. The standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating Financing of Terrorism (CFT), and regulated entities’.

Obligations under the Prevention of Money Laundering Act (PMLA), 2002. In addition to ensuring compliance with relevant provisions under the Foreign Exchange Management Act (FEMA).

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