Cryptocurrency Bill to Be Tabled in Parliament After Cabinet Approval, Says Finance Minister Nirmala Sitharaman


Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Tuesday that the government will soon bring a new bill on cryptocurrencies after getting approval from the Union Cabinet.

A bill on regulation of cryptocurrency and official digital currency has been included in the Lok Sabha Bulletin-Part II to be introduced in the Lok Sabha as part of the government business to be taken up during the ongoing winter session.

The Bill seeks to create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India (RBI).reserve Bank of India) for the ongoing winter session of Parliament. It also tries to restrict all private cryptocurrency In India, however, it allows some exceptions to promote the cryptocurrency and the technology underlying its use.

Answering a series of questions in Rajya Sabha, sitharaman “After the approval of the cabinet, this bill will come in the house,” he said.

The government had also listed a similar bill for the last Parliament session (monsoon), but it was not taken up.

“The first attempt was of course to come up with a Bill that the House can consider. But, later, because there were so many things to come into play at a fast pace, we started working on a new Bill. This That is the Bill which is being proposed now,” he said, adding that a “genuine effort” was made to bring the Bill even during the monsoon session.

The minister informed the House that the proposed legislation is likely to be introduced soon.When asked whether the government proposes to ban misleading advertisements in the media, he said that the guidelines of the Advertising Standards Council of India are being studied and their rules are also being looked into, so that we can do the needful. If necessary, take any kind of approach. Decision to see how we can handle it”.

The minister also said that cryptocurrencies are unregulated in India and the government does not collect data on transactions in cryptocurrencies.

Sitharaman also said that the government, RBI and SEBI are cautioning people about cryptocurrencies which can be a “high risk” area and “more can be done” to create awareness.

In July 2017, a study was conducted by the government through a research firm on ‘Virtual Currency: An Analysis of Legal Framework and Regulation for Regulation’. Subsequently, the government constituted an Inter-Ministerial Committee (IMC) under the chairmanship in November 2017. To study the issues relating to virtual currencies to the Secretary (Economic Affairs) and propose specific action to be taken in the matter.

The committee recommended, inter alia, the banning of all private cryptocurrencies in India. The panel also recommended that an open mind be advised regarding the introduction of an official digital currency in India.

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