A crypto bill has been looming in India over the past few months, with many expecting the bill to be voted upon during the winter session. However, the current report shows that voting for this bill is unlikely to happen soon.
Nevertheless, the Indian legislatures might still consider this bill, and even if the winter session ends without its consideration, it is highly likely to be tabled in the coming months.
Crypto bill does not appear on India’s parliament agenda
A local publication noted that the winter session that will end on Thursday will pass without looking into a bill prohibiting private cryptocurrencies. The bill, dubbed the “cryptocurrency and Regulation of Official Digital Currency”, is not included in the seven bills on Lok Sabha’s agenda in the winter session.
The bill came into the limelight through an official document from Lok Sabha stating that the legislatures would vote on a bill that developed a “facilitative framework for the creation of the official digital currency.” This is a central bank digital currency (CBDC) created by the Reserve Bank of India.
Crypto regulations in India
This is not the first time that a similar bill has appeared on the agenda of Indian legislatures. The bill had appeared previously, but it was not voted upon. Therefore, crypto regulations in India have remained in a grey zone, where they are not legalized or banned.
In March last year, India’s Supreme court overturned a crypto ban by the Reserve Bank of India. The ban had been operational for two years before being overturned. The Indian government has since been looking for alternative ways of regulating the rapidly growing crypto space.
However, failure to include the crypto bill in the winter session does not mean it will not be voted upon. As a matter of urgency, the President of India can issue an order to fast track the bill even when parliament is not in session.
Moreover, the Finance Ministry is also evaluating the crypto space to develop a regulatory framework for digital currencies. This framework could categorize cryptocurrencies as commodities such as precious metals.
India is most likely following China’s footsteps in banning private currencies to pave the way for the adoption of its CBDC. If this bill is passed, it could cause significant effects across the market, similar to what happened earlier this year when China banned crypto trading and mining.
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