Cryptocurrency Bill, 25 others to be introduced in Parliament's Winter session
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is one of 26 bills that have been proposed.
During the winter session, which begins on November 29, a bill to regulate cryptocurrencies will be submitted in Parliament. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is one of 26 bills that have been proposed. This comes only a week after the first-ever Parliamentary panel debate on the broad outlines of bitcoin financing, when it was agreed that cryptocurrency cannot be halted but must be controlled.
The bill aims to establish a framework that would facilitate the formation of the Reserve Bank of India's official digital currency. It also intends to outlaw all private cryptocurrencies in India; however, it makes specific exclusions to encourage the underlying technology of cryptocurrency and its applications. The Banking Laws (Amendment) Bill, 2021, will also be introduced, with the goal of "regarding the sale of two public sector banks."
Meanwhile, concerns have been expressed by the Reserve Bank of India and the Securities and Exchange Board of India concerning the unregulated expansion of cryptocurrencies in India, with vulnerable ordinary investors in mind. The Winter Session will discuss cryptocurrency and digital currency regulatory bills, banking amendment bills, agriculture law repeal, and IBC amendment bills, according to the legislative agenda for the forthcoming session announced on Tuesday.
India has recently developed a significant interest in cryptocurrencies, owing to their rapid expansion in the nation despite a lack of rules, but the government has been eager to enact legislation to control the digital currency business. Prime Minister Narendra Modi stated last week that cryptocurrencies must not fall into the "wrong hands and corrupt our young," encouraging all democratic nations to band together to prevent such incidents from occurring. The government and the RBI have lately hinted at imposing strict regulatory controls on cryptocurrencies in order to prevent money laundering and terrorist funding, rather than outright prohibiting it.