India’s draft regulation on crytocurrencies almost ready, says finance minister
10:06, 18 August 2021
India is in the process of drafting its rules governing how investors buy and sell cryptocurrencies, with work on the draft regulation nearing completion.
According to the country’s finance minister, Nirmala Sitharaman, India is “not against” cryptocurrencies. However, the “sophistication” of the rules that regulate it can be determined only after discussions with the nation’s central bank, she said in an interview with The Economic Times, published today (Wednesday 18 August 2021).
“I can say the work is nearly complete. It is now for the cabinet to go into it,” Sitheraman added in her interview with the newspaper.
Reversal
Her statements hint at a reversal in the way the government and the Reserve Bank of India (RBI) view digital currencies. Previously, the regime was supposedly eyeing a ban on cryptocurrencies.
Speaking on whether the nation will be subject to cryptocurrency legislation, Sitharaman said: “Let’s see how it’s going to be handled. Is it possible with just a notification and a rule or is legislation definitely required? It’s a call the cabinet will have to take. The proposal will go with all its potential.
“The RBI’s view has been that cryptocurrencies are distinct from blockchain technology. Its position has been that cryptocurrency should be banned. We’ve had quite some discussion on it. Let’s see how that plays out in the cabinet,” she added.
Legislation
Earlier this week, Sitharaman told the media that proposed legislation on cryptocurrencies had been tabled before the cabinet, as the Mint reported.
Millions of Indians are reportedly trading in crypto, and are treating it like an asset class – regardless of the ambiguity that surrounds the trade of virtual currencies.
The Narendra Modi regime has contemplated rules to criminalise the possession, issuance, mining, trading and transfer of crypto assets, Reuters reported in March. This thought process has followed a federal government idea that seeks to develop a framework for an official digital currency.
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