The recent issuance of Bulletin Part-II on the Lok Sabha’s website has created huge havoc between the common man, investors and market players. The said Bulletin covers the ‘General Information relating to Parliamentary and other matters’.
As per the Bulletin, ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ is likely to be introduced in the upcoming winter session of Parliament. The said bill is amongst the bills listed for introduction, consideration and passing during the upcoming session. Notably, the winter session of Parliament will begin from 29th November.
The said Bill is likely to ban all the cryptocurrencies, barring a few exceptions. Just by the whisper of the news, all the major cryptocurrencies saw a fall of around 15% and even more.
Let us look at the course of action adopted prior to the introduction of the bill in Parliament and analyze what can we expect from the bill in the current article.
The course of action-
Following are major course of action which are adopted prior to the introduction of the bill in the Parliament-
1. In the earlier part of the year 2021, the Reserve Bank of India (RBI) had conveyed its decision to seek a ban/ prohibition on cryptocurrency after expressing serious concerns.
2. Earlier this month, a high level meeting organized by Prime Minister Shri Narendra Modi undertook a complete review on cryptocurrencies. Concerns with regard to the unregulated cryptocurrency market likely to become an avenue for money laundering and terror financing was discussed.
3. Post the high-level meeting, Parliament’s Standing Committee on Finance met to seek views on cryptocurrency was also organized. The meeting included Blockchain and Crypto Assets Council (i.e., BACC); members from crypto exchange; industry organizations and various stakeholders. Notably, the meeting was concluded with a view that cryptocurrency shouldn’t be banned in India, but the same should be regulated.
Expectation from the Bill-
The Bulletin states that ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ will be introduced to-
- Create a facilitative framework for the creation of the official digital currency to be issued by the RBI (i.e., Reserve Bank of India),
- Prohibit all the private cryptocurrencies currently prevailing in India,
- Allow certain specified cryptocurrencies. Such exceptional allowance will be to promote the underlying technology and uses of cryptocurrencies.
Notably, the Bulletin provided only the above details relating to ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’. No other details were covered in the Bulletin.
Author Bio
Sir,
Thanks for this article explaining the risks. FATF clearly stated in its 111 pages booklet specific guidance for countries/ jurisdictions to mitigate risks of virtual asset, a broader concept. Again thanks for your innovative article.
Even FATF can’t ban crypto currency or I would call it virtual asset. FATF book with 111 pages can’t talk of banning it. Can we close my eyes to Paytm, dematt precursor to high tech, where we have a monopoly. Yes a bill to regulate but not ban. My efforts to get draft copy of bill failed. But seniors can’t ban future with promising returns but highly risky. Our sensex shows strong currents unheard of by senior professional like me. Old is not gold any more