GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO: 2864
ANSWERED ON: 21.03.2022
Mechanism for Trading of Cryptocurrencies
T.R.V.S. Ramesh
Kotagiri Sridhar
Sanjay(Kaka) Ramchandra Patil
Bheemrao Baswanthrao Patil
Will the Minister of
FINANCE be pleased to state:-
(a) whether the Reserve Bank of India(RBI) has proposed any mechanism for trading of crypto assets and if so, the details thereof;
(b) whether the Government proposes to define cryptocurrencies as securities or other financial instruments;
(c) if so, the details thereof;
(d) whether the Government has undertaken any steps to formulate transparent, regulatory measures for digital currencies/cryptocurrencies rather than the intended banning; and
(e) if so, the details and the status thereof including the details of protection for investors that the same will involve?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): No Sir.
(b) to (e): Cryptocurrency sector is unregulated. The legal framework for the sector may be finalised only after all aspects are carefully examined in consultation with stakeholders concerned.
RBI has been cautioning users, holders and traders of Virtual Currencies (VCs) vide public notices on December 24, 2013, February 01, 2017 and December 05, 2017 that dealing in VCs is associated with potential economic, financial, operational, legal, customer protection and security related risks. RBI vide its circular dated May 31, 2021 has also advised its regulated entities to continue to carry out customer due diligence processes for transactions in VCs, in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), obligations under Prevention of Money Laundering Act (PMLA), 2002, etc.
