Cryptocurrency Bill may not be tabled in the current Parliament session

The much-awaited Cryptocurrency Bill might not be introduced in the current Parliament session as it requires further consultations to re-evaluate the contours of the framework, said government sources.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 (Crypto Bill), which is included in the agenda of the Lower House of Parliament, could be introduced in the monsoon session, it is learnt.  

The Crypto Bill seeks to ban private cryptocurrencies and allow only the ones required to promote blockchain technology with ties to the Reserve Bank of India.

It is learnt that the government has received voices against the cryptocurrency ban. Even the draft proposal has not been cleared at the Cabinet level. It cannot be introduced in the House until its get cleared, following which it will also be referred to the standing committee of Parliament.

“The government is fine-tuning the operationalisation part for banning private cryptocurrencies under a new legislation that will be sent for approval soon,” said a government official, without specifying the expected timeline.

The finance ministry has, however, maintained its stand that the Inter-ministerial panel on cryptocurrency has submitted its report and a Bill to regulate the digital asset is being finalised. This Bill is likely to be sent to the Union Cabinet for approval soon.

Sources say the Bill is crucial as it will specify the kind cryptocurrencies the government is seeking a ban on, with clear definitions to plug any grey areas that could possibly arise due to the evolution of technology. Besides, the Bill will give clear definitions to cover private cryptocurrencies to allay concerns, if any.

The Department of Economic Affairs is holding the consultations, and inputs will be incorporated in the Bill.