Indian Government going to take big step on cryptocurrency | Softfed

Cryptocurrency Rules India: The government is likely to address the concerns of virtual currencies and their trade and taxation in the upcoming winter session of Parliament. The government can take a middle path.

India is unlikely to take a tough stance through the Bill on cryptocurrencies despite concerns in the upcoming winter session of Parliament. A report in the Economic Times quoted government sources as saying that considering the volume of trading and investment in the country, a ban on crypto assets is not being considered, but unregulated virtual currencies are not even considered legal tender. Is. The government is more likely to take a middle ground and a final decision on the matter may be taken soon.

Policy makers did a detailed assessment

Recently, policy makers, including the finance ministry, did a detailed assessment of the rules adopted by other countries, investments made by Indians in the industry and the views of the Reserve Bank of India (RBI) on the matter. Another submission will be made on the taxation on transactions of such properties, after which a legal inquiry will be conducted and then the matter will be sent to the cabinet.

Policy makers are thinking that the rules should be designed in such a way that they can be implemented effectively and take into account the technological developments in the digital space. The matter was not properly addressed in the earlier draft Bill.

The government had earlier listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for the budget session, but it was not put up for larger consultations. A ministerial panel was then set up to analyze the draft rules for such currencies.

With no firm rules regarding cryptocurrencies, there is a dilemma among investors, banks and other entities are also confused. Akhilesh Pratap Singh spoke to Deepshikha Sikarwar, Senior Editor, The Economic Times, about how the preparations are on the regulation front. You can read the highlights of this conversation here:

1. Cryptocurrencies are virtual currency, so they cannot be regulated by the earlier KYC rules and other rules. The laws which are in place now cannot handle this kind of thing. Therefore, it is necessary to make a separate law for cryptocurrency.

2. A government report on cryptocurrency in 2019 said that it should be completely banned. It said that those who deal in this should be fined up to Rs 25 crore and there should be a provision of imprisonment for 10 years. But this was not implemented.

3. The initial draft of the bill made by the government on cryptocurrency was later changed. The views of RBI, market regulator SEBI and government departments are being discussed. The interests of the investors will be taken care of.

4. Another presentation is to be made with the Revenue Department, Ministry of Finance and other entities on the issue of taxation related to cryptocurrency. Work is going on fast on this.

5. This bill was to be introduced in the budget session. But some changes were needed in it. Now it seems that the government has decided that there will be no complete ban, trading will be allowed. But cryptocurrencies will not get legal tender status.

6. Still the opinion of the Law Ministry will be taken on this bill. Then it will be sent to the cabinet. Efforts are being made to introduce this bill in the winter session of Parliament.


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