Cryptocurrency in India: The Indian government is not aiming to ban cryptocurrencies in the country. But it is rather considering their regulation as assets. The market watchdog, Securities and Exchange Board of India (SEBI) will be at the helm, as per sources.
This also confirms Finance Minister Nirmala Sitharaman’s words about Bitcoin not being recognised as a currency for payments in India.
However, the government is working on its own central bank digital currency (CBDC), which will be governed and monitored by the Reserve Bank of India (RBI).
Besides, citizens will need to declare their crypto assets and keep them on Indian exchanges. This means they will no longer be allowed to keep crypto on foreign exchanges or in private wallets.
So once the bill becomes law, people will be given some time to meet these requirements.
Moreover, India now also plans to amend its Prevention of Money Laundering Act (PMLA). It will make provisions for cryptocurrency activity. According to Finance Minister Sitharaman, the government is closely monitoring the risks that cryptocurrencies present.
Also, Prime Minister Narendra Modi has highlighted the volatile nature of digital tokens. He also called on global cooperation from democratic nations to regulate the sector and protect the youth.
Cryptocurrency Future in India
India’s proposed laws on regulating cryptocurrencies and other aspects of the crypto sector include decentralised autonomous organisations (DAOs), non-fungible tokens (NFTs). Also, the metaverse is on the agenda of the ongoing session of Parliament in the lower house.
And as per Sitharaman, the bill is pending approval from the Cabinet before it can be introduced to the Members of Parliament (MPs).
With the onset of a number of Private virtual currencies, world countries are pressing alarm buttons on their regulation.
In India also cryptocurrencies have been the subject of serious debate. The crypto enthusiasts have been pitching the technology advantage of these virtual currencies, and it has already led to a massive campaign that attracts youngsters.
But the concern pertains to national law when it comes to their regulation.
While there are mixed opinions on cryptocurrencies in India. The central bank has consistently resisted private cryptocurrencies like bitcoin.
Last month also, RBI governor Shaktikanta Das reinforcing his argument said, “When the central bank says we have serious concerns after due internal deliberations, there are far deeper issues involved.”
But so far, what is certain is that there will be a central bank digital currency (CBDC). Basically, CBDC is the digital form of fiat money.
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