Cryptocurrency Regulation Bill: The Centre is unlikely to table the much -anticipated cryptocurrency regulation Bill in the upcoming budget session of the Parliament, multiple news organisations have reported recently. This is because there is a need to have more discussions on it and the government wants to build consensus over the provisions of the upcoming Bill, said the reports. The reports also suggested that the Bill, which initially wanted to ban cryptocurrencies but later was intended to regulate them, is not completely ready yet. The new proposed rules regarding the digital tokens were supposed to be tabled before the Parliament during its Winter session last month.
According to a report by the Economic Times, the government wants to wait for the launch of the centrally controlled digital token by the Reserve Bank of India, which is expected in a few months.
“The crypto bill may not be introduced in the budget session. It is a complex subject. This will require more time,” Economic Times quoted a senior finance ministry official as saying. According to people with knowledge of this matter, the government, though keen on tabling the Bill soon, is also interested in holding further discussions with stakeholders before introducing it. This is aimed at strengthening the views on a policy, the sources told ET.
The finance ministry official also said that the government is waiting for the RBI to provide its inputs after the pilot launch of its own digital token. The launch of this token, and a legislative regulation on virtual currencies in general, in would also require amendments in the existing laws.
As per a report by ndtv.com, Prime Minister Narendra Modi wants global discussions on the matter of regulating cryptocurrencies, a point that he had come up with at his World Economic Forum (WEF) address. He had called for a synchronised global action to regulate cryptocurrencies, while speaking at the WEF on Monday.
Another reason, ET said in its report, for the delay of introduction of this Bill is the lack of consensus regarding the taxation framework for digital currencies. “While the government may give some direction on taxation for investors in crypto assets in the upcoming budget, a full-fledged taxation framework for the cryptocurrency industry is still a work in progress,” ET reported quoting people with knowledge in the matter.
“In the upcoming budget, we expect the government to consider levying TDS/TCS on the sale and purchase of cryptocurrencies. This can be a turning point for the crypto industry,” experts had earlier predicted regarding the Bill.
It still remains to be seen how the government frames the cryptocurrency Bill, initially called the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which has by now seen a host of discussions around it.