In Brief:
- The Indian Finance Minister stated that the new crypto bill is different from February’s crypto draft.
- Ms. Sitharaman declared that the center has yet to make decisions on the crypto advertisements ban.
- The creation of a legal framework and regulations for NFTs are being discussed, according to the Minister.
The Indian Finance Minister, Nirmala Sitharaman, stated in the Rajya Sabha that the government is working on a new crypto bill, which will be introduced in the house after the cabinet approves it.
“This Bill, once the Cabinet clears, will come into the house,” Ms. Sitharaman said in response to a series of queries in the Rajya Sabha.
The Minister also stated that the government, RBI, and Sebi have been warning people about cryptocurrencies, which she described as a “high risk” area in which “more could be done.”
In response to a query, Nirmala Sitharaman stated that the government has yet to make a decision to ban advertisements for cryptocurrencies in the nation.
“This is a risky area and not in a complete regulatory framework. No decision was taken on banning its advertisement,” Sitharaman stated.
The Finance Minister also said that the development of a separate legal framework and related regulations for NFTs are being discussed by the Government.
She also stated that the risk of cryptocurrency being used for illegal purposes is being continuously monitored. Sitharaman said that “investors have been cautioned” when asked about the efforts taken to ban advertisements by MP Sushil Kumar.
During the ongoing Winter Session of Parliament, the government is expected to introduce the Cryptocurrency and Regulation of Official Digital Currency 2021.
The bill intends to prohibit all private cryptocurrencies in India and allow for some exceptions in order to promote cryptocurrency’s underlying technology and applications, according to the bill’s official description.
Ms. Sitharaman had previously stated in the Lok Sabha that the Centre has no plans to recognize Bitcoin as a currency in the country. She also added that the government does not gather data regarding Bitcoin transactions.
