CNBC TV-18 reported that the Centre will likely move a modified bill regarding cryptocurrency at Parliament’s Winter Session.
According to sources, officials from the finance ministry are currently working on modifying the proposed cryptocurrency legislation. A draft of the bill that was earlier submitted proposed an Indian ban on digital currency use.
According to the report, officials from the finance ministry are working hard to speed up the modification of the cryptocurrency bill.
The Winter Session is when legislation is expected to take place and is scheduled for November 29-December 23.
An earlier report by A Economics Times Report suggested that the government would take a “middle route” regarding the crypto bill.
According to the report, a person said that “a balance must be found”. He also stated that the final decision on details of the law would be made within the next few days. It is more likely that there will be a middle way that balances all the concerns.
The person stated that the bill would incorporate technological advances in the digital asset space. This was not the case with the previous draft.
Notably, although the Reserve Bank of India had previously banned cryptocurrency, the Supreme Court overturned the ban in March 2020.
Although the government has spoken out about cryptocurrency regulation, it said that it is working with various stakeholders. The Economic Times had heard from Nirmala Sitharam, Finance Minister, that the government is “not against cryptocurrency” and would instead explore ways to help the country’s fintech industry.
This report is coming days after Sebi, the market regulator, banned investment advisors from advising on unregulated instrument, which includes digital gold and cryptocurrencies.
Sebi stated that SEBI had learned of unregulated activity in which registered investment advisors provide a platform for selling/buying/dealing in unregulated products, including digital gold. This was reported on October 21.
According to Chainalaysis, India’s cryptocurrency market grew 641 percent over the past year. This is driving growth in digital currencies in Central and Southern Asia.
According to the report, the cryptocurrency market in Pakistan grew by 711 percent last yea. Chainalysis’ Global Crypto Adoption Index includes three countries from Central & Southern Asia (CSAO), and Pakistan at number three.