The government of India will ban the use of cryptocurrencies to make payments. But will allow trading and storing them as assets like gold, stocks, or bonds. The Economic Times with reference to informed sources reported this.
Thus, according to the publication, the authorities are finalizing the draft law on the regulation of cryptocurrencies. It is expected that in the next two to three weeks; the Council of Ministers will submit the consideration.
Furthermore, the document will be presented to the Parliament at the winter session in February 2022. The bill provides for a ban on the active advertising of offers from crypto companies, including exchanges and trading platforms.
“Active, progressive and forward-looking”
The government is also working on the taxation of cryptocurrencies. Also, the government expects that the planned law will solve this problem, the source said.
At the beginning of 2021, the media reported on a possible ban on cryptocurrencies in the country. Moreover, the Reserve Bank of India (RBI) supported this idea, the government prefers some kind of “average” solution, The Economic Times noted.
The Council of Ministers believes that the steps taken with regard to cryptocurrencies should be “active, progressive and forward-looking,” since this is an evolving technology, a person familiar with the discussion told the publication.
The idea of regulation instead of a ban
On Monday, November 15, the Parliamentary Finance Committee held a meeting with representatives of the crypto industry. According to The Economic Times, parliamentarians also supported the idea of regulation instead of a ban.
According to him, the RBI presented its point of view to the Government of India. Which is “actively studying this issue and will make a decision on it”. Das stressed that the regulator has “serious concerns” about digital assets. Moreover, the governor questioned the reliability of reports on the number of cryptocurrency investors and the size of the industry in the country.