The Government proposed Cryptocurrency legalization, which can likely ban digital currencies. The Government may provide an exit for all crypto holders from private firms. According to an unofficial estimate, Indians hold around the US $1.5 billion, roughly Rs 10,000 crore.
The Government proposed to provide an exit period of 3-6 months before banning the trading in the inter-ministerial discussions. However, according to an official source, the bill’s final draft is still needed to be sent to the cabinet.
Reserve Bank of India (RBI)
RBI is getting ready to launch digital currency of its own. It also has shown that it is very much in the game. According to Shaktikanta Das, RBI Governor, the team is working on the technological and procedural side of the process.
The proposal of the legalization of cryptocurrencies is on hold. Because the Government continues its discussions and is trying to weave in stakeholder’s views in the future law, they hold extensive deliberations on the issue.
An inter-ministerial discussion is following the expert panel report. Moreover,the Cabinet Secretary holds the meetings. Various people concerned with this matter are making submissions to the secretary who will take them into account.
A senior government official said that the Government would come out with the bill without giving a timeline. According to the sources, the Government is ready to accept the central bank-backed digital currency, which is an idea mooted by the RBI.
The Government, along with RBI, seems to be in a consensus regarding private cryptocurrencies. According to them, private cryptocurrencies harm more than the good they do to the financial system and the currency holders.
The Cryptocurrency and Regulation of Official Digital Currency bill aim to prohibit all private cryptocurrencies. It is also planning to lay a regulatory framework to launch an official digital currency.
However, the bill did not pass in the Parliament budget session as it needs a high-powered inter-ministerial committee approval.
New company rules
According to the new company rules, which got notified in March, the corporate should disclose all the profit and loss details for the transactions which involve cryptocurrency. They have to report all the details regarding deposits, advances received from anyone to invest in cryptocurrency.