Changes are to be made to the existing crypto law in India this year. This could also take the form of a regulation or a special resolution.
The “Cryptocurrency and Regulation of Official Digital Currency Bill 2021” is currently planned for the winter session of Parliament. The largest democracy in the country wants to comprehensively regulate crypto currencies.
According to Indian media reports, the Indian government plans to revise the law and introduce it at the budget meeting in May. “Discussions are ongoing and key issues such as the treatment of private cryptocurrencies, the rationale for regulation and global practices are being re-examined,” an unnamed official told the Business Times.
The Indian government refers to all cryptocurrencies that are not issued by the central bank as “private cryptocurrencies”. This also applies to Bitcoin and Ether, which are, for example, about Bitcoin Loophole traded.
Citing unnamed sources, NDTV said the government wanted India’s crypto regulation to be in line with the global framework, but it did not want to rush crypto law.
The news outlet added, “Further changes to the crypto law are likely … and the center might consider issuing an ordinance or special ordinance after the meeting.”
The current bill aims to “ban all private cryptocurrencies in India, but allow certain exceptions to promote the underlying technology of the cryptocurrency and its use,” states the legislative agenda for the winter session of Lok Sabha, the lower house of the Indian Parliament.
While the Indian government has not released details of the bill, there have been reports that New Delhi plans to regulate crypto assets. The Securities and Exchange Board of India (SEBI) is to serve as the main regulator.
In addition, the Indian government plans to ban the use of cryptocurrencies in payment transactions. Investors will be given a deadline within which they must comply with the new regulations and declare their crypto assets.
Sources: PublicDomain on December 26th, 2021