A high-level meeting on cryptocurrency regulation in India is said to be held and Prime Minister Narendra Modi will make a final decision on how India will regulate the cryptocurrency industry. All options are under discussion, including full and partial regulation, as well as a full ban and partial ban.
Indian Prime Minister Narendra Modi will make final decision on Indian cryptocurrency regulation, The Economic Times reported on Friday, citing two people familiar with the development. A high-level meeting was held on Thursday to consider all options on how India should regulate the cryptocurrency industry, the publication notes, adding:
The options include a complete ban on private cryptocurrencies, a partial ban, allowing all categories of crypto products with regulation, or just a select few with regulation.
The issues discussed at the meeting included stakeholder views and concerns raised by the country’s central bank. The Reserve Bank of India (RBI) has repeatedly said it has “serious” and “significant” concerns about the cryptocurrency.
The Indian government has listed a bill titled “Cryptocurrency and Regulation of Official Digital Currency Bill 2021” which will be revived during the current session of Lok Sabha, the lower house of India’s parliament.
Last week, Indian Finance Minister Nirmala Sitharaman answered questions regarding the cryptocurrency bill and the government’s plan for the cryptocurrency sector. He confirmed that the bill has been reworked from the original version which aims to categorically ban cryptocurrencies.
Reports have revealed that the Indian government plans to regulate crypto assets, such as bitcoin, with the Securities and Exchange Board of India (SEBI) as the main regulator. However, other reports indicate that the government is seeking to ban the use of cryptocurrencies for its payers and will set a deadline for investors to report their cryptocurrency holdings. The bill will also establish universal know-your-customer (KYC) rules for cryptocurrency exchanges.
The publication added that the Minister of Finance has finalized the draft note on the cryptocurrency bill.
The government felt that certain sections of the bill needed more detailed discussion, including “the principles behind the bill” and the detailed details of how cryptocurrencies should be treated in India, said the newspaper.One person noted that “discussions are likely to focus on various options and the pros and cons of adopting them,” adding:
PM will now take a final call on these.
In November, Prime Minister Modi chaired a high-level meeting on cryptocurrency regulation with the participation of the Ministry of Finance and the RBI. He also urged all democratic countries to work together to ensure that cryptocurrencies, especially bitcoin, do not fall into the wrong hands.
The prime minister said at a virtual summit hosted by US President Joe Biden on Friday that emerging technologies, including cryptocurrencies, should be used to strengthen democracy, not undermine it.