India’s crypto community is left with unclarity on crypto regulations given the parliament’s winter session just ended, however the crypto bill was not tabled yet again. With this, it will be the second time that ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ was listed on the agenda but never made it to the parliament. After the second postponement, it is unlikely for the Indian crypto bill to become a law, at least not until next year’s Budget Session, that will end in the month of April.
The crypto community in India is left on a cliffhanger, waiting for the government to give clarity whether or not the country’s crypto regulations will be in favour of the industry. While Finance Minister, Nirmala Sitharaman has continued to convey a positive approach towards crypto regulations, the Reserve Bank of India (RBI) has displayed opposite intent and the crypto community might be caught in the cross-fire of the Indian authorities’ conflict-of-interest.
RBI suggests blanket ban on crypto
Last week, CoinGape reported on RBI’s alleged suggestions to implement a blanket ban on crypto in the country. According to Economic Times insider reports, in the Central Board of Directors of Reserve Bank of India (RBI) meeting, RBI argued in favour of an absolute ban on cryptocurrencies. RBI supported its anti-crypto stance with its long standing argument about crypto as a threat to macroeconomic and financial stability, along with exchange management.
Furthermore, the market is raging with speculations that an absolute ban or at least stricter crypto regulations could be implemented in lieu of the Crypto Bill’s postponement. The industry remains concerned, questioning if the reason behind the incomplete draft could in fact be a 180 degree turn towards an absolute ban on crypto over regulations?
Nirmala Sitharaman ascertained at the beginning of crypto bill discussions this winter session that the government was not looking at banning crypto. However, with the second failure to table the bill in parliament, Sitharaman’s word may just prove false.