The stance on cryptocurrencies from the Indian government is still not out of the clouds. A few days ago, the government of India held an official meeting that called for the regulation of cryptocurrencies in the region. However, the governor of RBI, Shaktikanta Das, told the media that the cryptocurrency markets pose a threat to the financial stability of the country.
The government of India has been planning to protect the interest of investors who have diversified their portfolios with cryptocurrencies this year. On the other hand, Das added that local crypto exchanges manipulated their user count to mislead government officials. Yesterday, a new official bulletin was issued by the Parliament regarding cryptocurrency regulation.
After getting banned in China, the biggest gateway for cryptocurrency trading in Asia is India. Several major financial investment firms have established branch offices in India, and cryptocurrency organizations have followed suit. However, recently Lok Sabha has called for a session of the parliament that will present the Banning of cryptocurrency and Regulation of Official Digital Currency Bill formally.
It is worth noting that the bill was first chartered in 2019 and has not been presented yet. The contents of the bills are yet unknown, but some media outlets have hinted that the subject matter deals with invoking an all-around cryptocurrency ban in the nation, including holding, trading, and mining.
The latest development towards the cryptocurrency ban is a decision that has been prompted by Prime Minister Modi and his cabinet of state legislators. Jaideep Reddy is a technology law expert at Nishith Desai Associates. Speaking on the matter, he claimed that since there is no way of knowing the exact contents of the 2019 bill, it is best to wait for now.
It is worth noting that the bill was chartered under the supervision of the secretary of the Department of Economic Affairs Subash Chandra Garg and the Ministry of Finance in 2019. Lok Sabha also mentioned the current bill earlier this year in February, but it will be the first time that the bill will be formally submitted in the bicameral parliament of India.