The union government has no plans to boost the cryptocurrency sector in the country, the Treasury Department told parliament on Monday.
The comments can be traced back to the rapid developments in the cryptocurrency space in India, with the government going to introduce a bill to regulate cryptocurrencies in the current parliamentary session.
Additionally, when asked about the data available to active cryptocurrency exchanges working in India for both local and international developers, the government said it does not collect data on the cryptocurrency sector.
Earlier, Treasury Secretary Nirmala Sitharaman said global action is needed to regulate evolving technologies, including cryptocurrencies. In a separate exclusive interaction at the Hindustan Times Leadership Summit 2021, the finance minister said the government would come up with a “well-advised” cryptocurrency bill.
“The Bill on Cryptocurrencies and the Regulation of Official Digital Currency 2021” aims to “provide an enabling framework for the creation of the official digital currency issued by the Reserve Bank of India (RBI). However, cryptocurrency private companies in India allow certain exemptions to promote the underlying cryptocurrency technology and usage.
There is currently no regulation or ban on the use of cryptocurrencies in the country. RBI has repeatedly reiterated its strong views on cryptocurrencies, stating that they pose a serious threat to the country’s macroeconomic and financial stability, and has also questioned the number of active investors. about them, as well as their declared market value.
RBI Governor Shaktikanta Das has also reiterated his views against the approval of cryptocurrencies, stating that they pose a serious threat to any financial system as they are not regulated by central banks.
