Anurag Thakur, Minister of State for Finance told Rajya Sabha on Tuesday that the government will bring a bill on crypto currencies as existing laws are inadequate to deal with issues concerning them.
According to him, the government is in the process of finalising a cryptocurrency bill which will be sent to the Union Cabinet soon.
This is to ban private cryptocurrencies while putting in place a framework for the launch of a digital currency by the Reserve Bank of India.
The government is seeking to ensure that Indian investors are not exposed to risks with cryptocurrency seeing a record rise in recent months.
Earlier reports stated that all private cryptocurrencies, except any cryptocurrency issued by the State would be prohibited in India.
There are underlying uncertainties and fears linked to cryptocurrency being used for money laundering in the absence of any KYC norms.
In fact, some of the exchanges, which operate, had recently launched steps related to KYC.
This would further ensure that India’s move will put it in line with countries like China that have created facilitative frameworks for the launch of official digital currencies.
Zebpay CEO Rahul Pagidipati was quoted saying “Its (the bill’s) success will depend on the details, particularly the definition of what the bill calls ‘private cryptocurrencies’.”
The bill is seen to be a continuation of the recommendations of a committee headed by then economic affairs secretary S C Garg with SEBI and RBI officials as its members.
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