FM: Cryptocurrency Bill Expects Clearance From the Cabinet
Bitcoin Currency Coin Crypto Cryptocurrency

Cryptocurrencies are virtual or digital currencies in which encryption techniques are employed to monitor the generation of their units and evaluate the transfer of funds happening independently of a central bank.

India has always had its doubts about cryptocurrencies; however, it is gradually making up its mind to accept or decline digital currencies. As per the data obtained from crypto exchanges, an estimated 1.5 crore Indians have invested in cryptocurrencies worth Rs 15,000 crore. The number of people starting to invest in cryptocurrencies is increasing with every passing day. 

The inter-ministerial panel under the Chairmanship of Secretary (Economic Affairs) concerning cryptocurrency has already studied the concerns related to virtual currencies, recommended suitable actions, and submitted the report. The panel has recommended prohibiting all private cryptocurrencies, apart from any virtual currencies issued by a state. The Reserve Bank of India (RBI) also has escalated concerns related to the cryptocurrencies traded in the market and have reported the same to the Centre.

An outright ban concerning cryptocurrencies will not be there; however, they will not be permitted for legal tender either. Cryptocurrencies are probably going to be managed as a tradable asset class with a market.

Previously, Nirmala Sitharaman, the Finance Minister, had stated that the government is not looking at closing all options concerning cryptocurrency. People will have adequate chances to experiment with bitcoins, cryptocurrency, and blockchain.

Finance Minister Nirmala Sitharaman mentioned that soon the Union Cabinet might be undertaking a bill for regulating cryptocurrency and its growing market in India. Cabinet note concerning the cryptocurrency bill is ready. Cabinet clearance is being awaited currently. The cryptocurrency bill probably might be tabled in the Parliament’s winter session.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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