Crypto legislation set for Winter agenda of India’s parliament

The Indian government has scheduled a hearing on cryptocurrency regulation for the winter session of parliament, which will begin on November 29, 2021, and end on December 23, 2021. 

The decision, announced Tuesday, was made by the standing committee on finance, which convened on Nov. 16, 2021, with representatives from exchanges, the Blockchain and Crypto Assets Council, and other stakeholders to identify a middle ground for crypto legislation, similar to parts of Europe but different from China.

Concerns about cryptocurrency

One of the 26 new proposals that will be reviewed is the Cryptocurrency and Regulation of Official Digital Currency Bill (2021).

The Indian parliament will debate the restricted use cases for private cryptocurrencies as well as the framework for an Indian Reserve Bank Central Bank Digital Currency (CBDC), which is the proverbial elephant in the room. 

Shaktikanta Das, the governor of the Reserve Bank of India, has expressed concerns about cryptocurrency’s potential to cause “macroeconomic and financial stability” issues and has slammed crypto exchange numbers as overstated.

Investor protection and alluring ads, which have the ability to lead young investors into dangerous transactions, have also been long-held concerns.

Stakeholders offer their opinions on the bill

There are concerns about taxing cryptocurrency revenues and the proper classification of crypto assets in the bill. 

Crypto will most likely be classified as an investment asset category, allowing it to be traded rather than used as a currency, as stated by a government official. 

In terms of taxation, the Revenue Secretary stated that the government would unify brokerage and trading platform taxation standards depending on how similar current firms must comply.

WazirX’s Chief Executive Officer and Founder, Nischal Chetty, expressed enthusiasm for the law, hailing it as the first step toward India’s supremacy of Web 3.0. 

The new bill, according to Kashif Raza of crypto education site Bitnning, is comparable to the existing bill, which was passed in 2018. 

The term “private cryptocurrencies” has not been clearly defined, Sathvik Vishwanath, CEO of UnoCoin, said. 

 

Image courtesy of Cointelegraph News/YouTube

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