Finance Minister Nirmala Sitharaman has said that the central government is firm on the decision to ban all types of cryptocurrency. He said that only e-currency issued by the government will be approved. Nirmala Sitharaman while answering a question in Rajya Sabha said that a high level committee has recommended banning all types of private cryptocurrency in India. The committee says that only the e-currency issued by the central government should be approved. The Finance Minister said that the government is planning to issue strict guidelines regarding the trading of cryptocurrencies.
Need for law on cryptocurrency
Finance Minister Nirmala Sitharaman said in the Rajya Sabha that at present the Reserve Bank of India (RBI) and (SEBI) do not have any law for the regulation of cryptocurrency. The Finance Minister said that an Inter-Ministerial Committee (IMC) has been formed to look into the issues related to cryptocurrency. At the same time, Minister of State for Finance Anurag Singh said that the government will soon bring a bill regarding cryptocurrency, as the existing laws are not sufficient to deal with matters related to it.
Cryptocurrency bill is being finalized
Minister of State for Finance Anurag Singh said that cryptocurrency is not a currency, assets, security or commodity issued by identifiable users. Therefore, the Reserve Bank of India and SEBI’s BASS are not adequate laws for its regulation. The government had formed a committee, which has given its report on cryptocurre. The Committee of Secretaries, headed by the Cabinet Secretary, has also submitted its report. Now the government is going to finalize the bill on cryptocurrency. It will soon be sent to the cabinet and the bill will be introduced.
Reserve Bank is preparing to bring digital currency
The Reserve Bank of India issued a circular in April 2018, looking at the risks associated with all virtual currencies, including bitcoin. It was suggested not to deal in virtual currency. The Supreme Court quashed this circular of the Reserve Bank in a March 4, 2020 decision. In February 2021, the Reserve Bank said that it was working on a plan to bring in the Indian digital currency.