Changes will be made to India’s existing cryptocurrency law this year. This could also take the form of a regulation or a special resolution.
The “Cryptocurrency and Regulation of the Official Digital Currency Law 2021” is currently scheduled for the winter session of Parliament. The largest democracy in the country wants to fully regulate cryptocurrencies.
According to Indian media, the Indian government wants to review the law and present it at the May budget meeting. “Discussions are ongoing and key issues such as the treatment of private cryptocurrencies, the logic of regulation and global practices are being reexamined,” an anonymous official told the Business Times.
The Indian government defines “private cryptocurrencies” as all cryptocurrencies not issued by the central bank. This also applies to Bitcoin and Ether, which are, for example, approx Bitcoin loophole exchanged.
Citing anonymous sources, NDTV said the government wanted India’s cryptocurrency regulation to be in line with the global picture, but didn’t want to rush the cryptocurrency law.
The news agency added: “Further changes to the cryptocurrency law are likely… and the center may consider issuing an ordinance or special ordinance after the meeting.”
The current bill aims to “ban all private cryptocurrencies in India, but allow some exceptions to promote the technology behind the cryptocurrency and its use,” states the legislative agenda for the winter session of Lok Sabha, the chamber of the Indian Parliament.
Although the Indian government has not released details of the bill, there have been reports that New Delhi plans to regulate cryptocurrencies. The Securities and Exchange Board of India (SEBI) will act as the main regulator.
Additionally, the Indian government plans to ban the use of cryptocurrencies in payment transactions. Investors will be given a deadline by which they will have to comply with new regulations and declare their cryptocurrencies.
Sources: PublicDomain on December 26, 2021