In India, Nirmala Sitharaman, the Minister of Finance, announced that the crypto bill has been proposed to the cabinet. Now, they are waiting for it to be approved. While speaking to reporters on Monday, he stated that the cabinet is ready to receive the bill. Meanwhile, he is waiting for them to clear it.
For the longest time, India has remained undecided about cryptocurrencies. Slowly, it has been weighing the pros and cons of accepting or rejecting digital currencies. A report has already been submitted by a cryptocurrency discussion panel comprising different ministers. Chaired by the secretary of economic affairs, its purpose is to evaluate the issues related to digital currencies. At the same time, it needs to propose proper actions.
So far, they have taken the harsh stance to prohibit all private cryptocurrencies in India. The only exception is that of state-issued virtual currencies. Another party that raised its concerns surrounding cryptocurrencies being traded is the Reserve Bank of India. They have conveyed their grievances to the Center.
The Governor of RBI, Shaktikanta Das, reiterated that both the finance ministry and central bank hold a similar position. According to him, both parties have the same opinion on cryptocurrencies. He explained that he has reasons to assume that the government agrees with the concerns. Here, he refers to the ones regarding cryptocurrencies flagged by the RBI.
He responded that they should now wait for the final decision on the matter. At the start of the year during March, India’s Supreme Court made a seemingly counterproductive announcement. The institution allowed financial institutions and banks to restart crypto services. It did so by dismissing the 2018 circular by the RBI, which prohibited the concept.
They offered context, stating that cryptocurrencies act as virtual or digital currencies. Their purpose is to regulate how many of their units are generated. Other functions include operating outside of the control of a central bank. Not to mention, it helps with verifying fund transfers as well.
The ruling on this was decided by a three-judge bench, which was headed by the Judge, Justice R F Nariman. He stated that the circular by the Reserve Bank of India will be set aside. He elaborated that the liability of it being dismissed is on the grounds of ‘proportionality.’
Because of this, the bench said that the writ petitions will be allowed. However, the circular, which was announced in 2018, April 6, will be put aside. The bench also comprises justices V Ramasubramanian and Aniruddha Bose.
The upcoming crypto bill could change the fate of the country’s ecosystem. If the wrong results ensue, it risks stifling innovation. That’s why enthusiasts are struggling hard to get a favorable decision.