Indian law soon to deal with cryptocurrency |
Indian Finance Minister Nirmala Sitharaman said that the government would soon introduce a Bill in Parliament to deal with cryptocurrency. The Cabinet of Ministers will approve it soon. Speaking at the chaotic proceedings of the Rajya Sabha during Parliament`s Winter Session, the Minister said that cryptocurrency is “a risky area” which does not have a complete regulatory framework. The Minister`s statement came during Question Hour when Bihar`s BJP MP Sushil Kumar Modi asked if the government was planning to ban "misleading advertisements" for the time being. Modi pointed out that last time, too, the cryptocurrency regulation Bill was mentioned in the bulletin but it was not introduced. Regarding the regulation of non-fungible tokens (NFT), Sitharaman said that it was still being discussed by the government. NFTs are digital tokens representing a wide range of one-of-a-kind tangible items — from a jpeg file, music file, video clip to anything else that can be stored digitally. The hype surrounding cryptocurrency has also led to a boom for the NFT market around the globe. However, the Indian Finance Minister said that to avoid undesirable activities, crypto trades are being closely monitored. The `Cryptocurrency and Regulation of Official Digital Currency Bill, 2021` is among 26 new Bills on the government`s agenda for the Winter Session of Parliament, which seeks to "create a facilitative framework for the creation of the official digital currency to be issued by the RBI”. The Bill is particularly important as it seeks to prohibit all private cryptocurrencies in India and allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
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