Indian parliament's agenda includes bill to put ban on private cryptocurrencies
The Cryptocurrency and Regulation of Official Digital Currency Bill are one of 26 new pieces of legislation for India's lower house of parliament to consider if it convenes next Monday.
The Indian government will consider a bill that would make a digital rupee starting as early as next week, but may also ban certain cryptocurrencies in the nation.
As per Tuesday publication, India's lower house of parliament, Lok Sabha, will consider The Cryptocurrency and Regulation of Official Digital Currency Bill as one of 26 new bills when the government body convenes for its winter session next Monday. The document says that law lawmakers could vote on legislation that creates "a facilitative framework for the creation of the official digital currency" declared by the country's central bank, the Reserve Bank of India. in addition, the bill proposes the prohibition of "all private cryptocurrencies" with the exception of assets" to promote the underlying technology of cryptocurrency and its uses."
The same bill has recently been shown on the Indian parliament's agenda but has not led to a government vote on legislation that addresses digital assets. In March 2020, the Indian Supreme court overturned a blanket ban on crypto imposed by the central bank two years ago. After that time, statements from many media outlets as well as announcements from officials suggest that the Indian government is thinking about various solutions to regulate digital assets.
With a population of roughly 1.4 billion, India decided to establish a concrete legal framework for a central bank digital currency and ban many token projects that would likely make significant ripples throughout the space. Cashaa CEO Kumar Gaurav said in Cointelegraph in January that legislation was likely more of an attempt to prevent illicit activities in the industry rather than outright ban crypto.
Should the intended bill come to fruition, India's lawmakers would still have to address how to manage the digital asset projects legally allowed to operate in the nation as well as the digital rupee. A September report from ET Now suggests the country's tax department could tax crypto earnings through trade and exchanges. in addition, officials from India's Finance Ministry are reportedly considering a legal structure that could treat cryptocurrencies closer to commodities than currencies.