India could allow preapproved cryptocurrency to be traded and listed on stock exchanges. The government also aims to introduce and adopt a cryptocurrency law before the year ends.
Indian Crypto Regulations and Preapproved Cryptocurrencies
India is considering allowing only cryptocurrencies that have been “preapproved by the government” to be listed and traded on exchanges, Reuters reported Thursday, citing two sources familiar with the discussions.
Sources said that approval processes are deliberately slow to prevent investors holding cryptocurrencies. According to one source, the publication said:
A coin can only be traded if it has been authorized by the government. Otherwise, it could attract a penalty.
Many Indian news media reported that the government may introduce cryptocurrency bills during the winter session. Unnamed sources were cited by each of the news outlets. The winter session will begin in November and run until December 23.
CNBC-TV18 reported last week that finance ministry officials are trying to “fast track” a modified cryptocurrency bill. This week, The Mint reported that the government intends to present the modified crypto bill within the first week in winter session once it has been cleared by Union Cabinet. Reuters, however, wrote Thursday
In the first parliamentary session of this month, the government plans to pass and introduce a crypto law.
Indian Prime Minister Narendra Modi also spoke out on cryptocurrency. On Thursday, he urged all democratic nations to work together to ensure cryptocurrency, including bitcoin, “does not end up in wrong hands, which can spoil our youth.” It was his first public speech specifically mentioning cryptocurrency and bitcoin.
The prime minister presided over a meeting about cryptocurrency last week after consulting with the RBI, Ministry of Finance, Ministry of Home Affairs, and central bank.
Following the meeting held by Prime Minister Modi, India’s Parliamentary Standing Committee on Finance held a meeting with experts from the crypto sector. This was India’s first-ever parliamentary discussion of the broad subject of crypto finance involving the industry. The committee then called upon the government for an answer to its questions regarding cryptocurrency.
What do you think about the Indian government’s plan to regulate cryptocurrency? Please comment below.
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