Amidst the ongoing confusion in India regarding cryptocurrency recognition, there is relief news for cryptocurrency investors from the Parliament. Jayant Sinha, chairman of the Parliament Standing Committee on Finance, said during an online event that the government would adopt a special approach to regulate cryptocurrencies in India that would be different from the western market.
The latest update has come which has brought relief for the investors.
Investors have been waiting for a long time for regulation for bitcoin and other crypto instruments and uncertainty has struck a chord in the minds of Indian stakeholders. Meanwhile, this latest update has come which has brought relief for the investors. The country has a strong base of cryptocurrency exchanges and investors, but it has not yet recognized cryptocurrencies as legal assets or currency.
Speaking at the Crypto Asset Conference HODL – 2021 organized by the Blockchain and Crypto Assets Council (BACC) of the Internet and Mobile Association of India (IAMAI), Sinha said that India is on its way to the US, Japan, or El Salvador in its approach to cryptocurrencies. will not work. He also said that once approved by Parliament, the process of regulating cryptocurrencies will “include the views of stakeholders”.
Develop a framework to make it an official digital currency
Sinha said, “It will be good if we have global standards and then something above and beyond these, which will be unique to India, which can be developed and worked upon.” The MP also said that the country the U.S. needs to consider legislation on cryptocurrencies keeping in mind the national security concerns. In late January, the government proposed a bill to ban “all private cryptocurrencies” in the country and develop a framework to make it an official digital currency issued by the Reserve Bank of India (RBI).
Days after that bill was listed in the Lok Sabha bulletin, Minister of State for Finance Anurag Singh Thakur, responding to a question raised in the Rajya Sabha, said that the government “does not consider cryptocurrency a legal tender or a coin”. He also emphasized that the government may be involved in financing illegal activities or using crypto assets as part of payment systems.