The Indian government is proposing a measure that would establish a digital currency as soon as next week, but it may also prohibit the use of certain cryptocurrencies.
When India’s lower house of parliament convenes next Monday, it will discuss 26 new pieces of legislation. Including the Cryptocurrency and Regulation of Official Digital Currency Bill.
The law also suggests that “all private cryptocurrencies” be banned
The Cryptocurrency and Regulation of Official Digital Currency Bill will be one of 26 new proposals considered by India’s lower house of parliament, Lok Sabha, when it commences for its winter term next Monday, as per a Tuesday release. According to the paper, MPs may vote on legislation that establishes “a facilitative framework for the development of the official digital currency” issued by the Reserve Bank of India. The law also recommends banning “all private cryptocurrencies”. With the exception of assets, in order to “advance the underlying technology of cryptocurrency and its purposes.”
A similar bill has appeared briefly on the Indian parliament’s calendar. But no law addressing digital assets has acquired approval by the government. In March 2020, India’s highest court reversed the central bank’s two-year-old blanket prohibition on cryptocurrency. Many media sites have reported since then that the Indian government is studying various measures. In order to manage digital assets, as well as statements from authorities.
“An attempt to limit fraudulent practices in the cryptocurrency business”
India’s decision to create a concrete legislative framework for a central bank digital currency and to ban several token initiatives is sure to cause big waves in the market. In January, Cashaa CEO Kumar Gaurav stated that the legislation was more probably an attempt to limit fraudulent practices in the cryptocurrency business than an absolute prohibition for its population that counts roughly 1.4 billion.
If the proposed bill passes, India’s lawmakers will still have to figure out how to deal with digital asset projects. Those with permission to function legally in the country, as well as the digital rupee. According to a September article from ET Now, the country’s tax authorities may tax cryptocurrency earnings from trade and exchanges. In addition, Indian Finance Ministry officials are apparently exploring a regulatory structure. That would treat cryptocurrencies more like commodities than currency.