Government will take a Typical approach to regulate cryptocurrencies in India that will be different from the western markets. Chairman of the Parliamentary Standing Committee on Finance Jayant Sinha said during an online event.
The latest comments come amid uncertainty among Indian stakeholders due to long anticipation of regulation for Bitcoin and other crypto instruments.
India has a strong base of cryptocurrency exchanges and investors, but it so far has not recognise cryptocurrencies as a legal asset or currency.
In crypto asset conference HODL 2021 which is organise by the Blockchain and Crypto Assets Council (BACC) of Internet and Mobile Association of India (IAMAI), Jayant Sinha said that India would not follow the US, Japan, or El Salvador in its approach toward cryptocurrencies.
Jayant Sinha, MP and former Minister of State for Finance Said :
“Our solution will have to be distinct and unique for India, simply because of our unique circumstances,”.
He also said that the process of regulating cryptocurrencies would involve “stakeholder consultations” after getting approvals from the parliament.
Jayant Sinha added :
“It would be good if we have global standards and then if there is something above and beyond the global standards, that is unique to India, that can also be develope and worked,”.
Government also noted that the country needs to consider legislation on cryptocurrencies that keeps national security concerns in mind.
Government proposed a bill to prohibit “all private cryptocurrencies” in the country and develop a framework for creating an official digital currency issue by the Reserve Bank of India (RBI) in late January.
After a couple of days when bill got list on the Lok Sabha bulletin, Minister of State for Finance Anurag Singh Thakur said while responding to a question raised in Rajya Sabha by saying that the government “does not consider cryptocurrencies legal tender or coins”.
Singh also underline that the government would take all measures to eliminate use of crypto assets in financing illegal activities or as part of the payment system.
Those two major activities, along with an earlier RBI’s ban on cryptocurrencies that was quashe by the Supreme Court last year, raise concerns among investors in the country.
Major cryptocurrency stakeholders are optimistic and consider the fresh comments from Sinha as an indication of a positive move by the government.
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