India’s finance minister has offered an update on the country's cryptocurrency law, which the government has been working on. “We put forth a lot of effort on it. We listened to stakeholders,” she was reported as saying.
In an interview with Businessline released last week, India’s Finance Minister Nirmala Sitharaman said the country's cryptocurrency bill is ready for the cabinet.
Sitharaman was questioned about the progress of the “Cryptocurrency and Regulation of Official Digital Currency Bill 2021,” as well as when it is expected to be enacted. The Indian finance minister responded:
“We've put forth a lot of effort. We included feedback from stakeholders. The Cabinet note is complete. We'll have to wait and see when the Cabinet can take it up and discuss it before we can move it.”
“From our perspective, I believe one or two indicators that I have provided show that, at the very least, a window will be available for Fintech, experiment, and pilot initiatives. A decision will have to be made by the Cabinet,” she stressed.
The law was expected to contain a prohibition on any ‘private cryptocurrencies’ as well as a central bank digital currency. It was also scheduled for the Parliament's Budget session, however, it was not introduced probably because of the second COVID-19 wave.
Users at India's cryptocurrency exchanges can no longer deposit rupees. Many exchanges have devised workarounds, but there is still uncertainty about how Indians will trade in cryptocurrency in the future.
Some banks have also sent warnings to customers who had transacted with cryptocurrency exchanges.
The Indian parliament has approved legislation to establish an official digital currency. The measure aims to make all private cryptocurrencies illegal in the country.
It also provides for exclusions to promote the underlying technology of cryptocurrencies and their applications, according to the government. Representative: "Technology is advancing at a rapid pace throughout the world. We can't act as if we don't want it."