The Indian government is reportedly in the process of fast-tracking a law that could ban digital currencies in the country.
The “Cryptocurrency and Regulation of Digital Currency Bill 2021” was proposed recently by the Indian government. It was set to be debated in the ongoing parliamentary session on the national budget. Many digital currency experts in India were optimistic that a parliamentary debate would bring a positive result. They predicted that legislators would not adopt the totalitarian stand and would amend it to have enabling regulations.
However, according to CNBC-TV18, the Parliament may not get the opportunity to amend the bill. The business TV station reports that a confidential source revealed the government is set to follow the ordinance process on the bill.
“What sources are indicating to us is that the government might take the ordinance route to pass the ‘Cryptocurrency and Regulation of Digital Currency Bill,’” the news outlet reported.
“To be precise, the cabinet secretary in the Ministry of Finance has started preparing the draft details of the ordinance and that the government is of the view that they would want to introduce this law within a month of the clearance of this ordinance. They want this bill to be cleared as soon as possible.
The outlet further revealed that the cabinet had approved the ordinance process for the bill during its last meeting.
“All eyes will be on the government and how soon it can get it done, because parliament is currently in session, and an ordinance can only be brought in once parliament is not in session.”
Ordinances in India are laws that are promulgated by the President of India on the recommendation of the Cabinet. They have the same power as an Act of Parliament. As the outlet revealed, the government can only result to ordinances when parliament is not in session.
The Indian digital currency industry is still optimistic that the government will accommodate their views on regulations. Sumit Gupta, the founder of India’s largest exchange CoinDCX stated:
For regulations to come in place, it is important to engage in dialogue with industry players and stakeholders involved.
Lawmakers will benefit from the right information we can provide that will help to make appropriate guidelines and regulatory framework.#TryCrypto
— Sumit Gupta (CoinDCX) (@smtgpt) February 10, 2021
The industry has also started a campaign to show the widespread support digital currencies have in India. Dubbed #IndiaWantsCrypto, the campaign is inviting the public to support its petition against the banning of digital currencies.
See also: CoinGeek Live panel, Digital Currency & Global Compliance: Tools & Tips for Exchanges, Wallets & Other Service Providers
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