India’s cryptocurrency bill is likely to take more time to be introduced as crypto is a complex subject. The bill is thus unlikely to be taken up during the upcoming session of parliament. To build a consensus on a regulatory framework for cryptocurrency, the government is said to be seeking more discussions, as per a report by the Economic Times.
Governing authorities want to hold more discussions and reach a consensus on the regulatory framework for cryptocurrency, the publication reported citing unnamed government officials familiar with the issue.
Officials from the finance ministry told the publication that the crypto bill may not be introduced during the budget session. It is a complex topic. It will take more time and the government is now reportedly reworking the bill.
Officials from the government reportedly told the news outlet that the government wants to wait for technical inputs from India’s central bank, the Reserve Bank of India (RBI), after the launch of its central bank digital currency, the digital rupee.
It is expected that the pilot launch will take place in the next few months. During its recent meeting of the central board of directors, India’s central bank recommended a complete ban on cryptocurrency. The RBI stated a partial ban would not work stating that the central bank needs to have much deeper discussions (on crypto).
When the central bank says it is concerned about macroeconomic and financial stability, there are much deeper issues at play that are involved in the central bank governor’s comment in October.
Cryptocurrency poses risks to the country’s financial system, as the central bank has warned repeatedly. The Indian prime minister called, earlier this week, for global collaboration to combat the challenges brought by cryptocurrency.
India’s Directorate General of GST Intelligence (DGGI) raided major crypto exchanges recently and found “massive” GST tax evasion. The crypto industry is seeking tax clarity from the Union Budget as well.
