The Cryptocurrency and Regulation of Official Digital Currency Bill is one of 26 new pieces of legislation for India's lower house of parliament to consider when it convenes next Monday.
The Indian government will be considering a bill that would create a digital rupee starting as early as next week, but may also ban certain cryptocurrencies in the country.
According to a Tuesday publication, India's lower house of parliament, Lok Sabha, will consider The Cryptocurrency and Regulation of Official Digital Currency Bill as one of 26 new bills when the government body convenes for its winter session next Monday. The document states that lawmakers could vote on legislation that creates “a facilitative framework for creation of the official digital currency” issued by the country’s central bank, the Reserve Bank of India. In addition, the bill proposes the prohibition of “all private cryptocurrencies” with the exception of assets “to promote the underlying technology of cryptocurrency and its uses.”
The same bill has previously appeared on the Indian parliament’s agenda but has not led to a government vote on legislation that addresses digital assets. In March 2020, India’s supreme court overturned a blanket ban on crypto imposed by the central bank two years ago. Since that time, reports from many media outlets as well as statements from officials suggest that the Indian government is considering different solutions to regulate digital assets.
Related: Proposed crypto ban legislation reportedly under review by India’s government
With a population of roughly 1.4 billion, India choosing to establish a concrete legal framework for a central bank digital currency and ban many token projects would likely make significant ripples throughout the space. Cashaa CEO Kumar Gaurav told Cointelegraph in January the legislation was likely more of an attempt to prevent illicit activities in the industry rather than outright ban crypto.
Should the proposed bill come to fruition, India’s lawmakers would still have to address how to handle the digital asset projects legally allowed to operate in the country as well as the digital rupee. A September report from ET Now suggests the country’s tax department could tax crypto earnings through trade and exchanges. In addition, officials from India's Finance Ministry are reportedly considering a legal framework that could treat cryptocurrencies closer to commodities than currencies.
Indian parliament's agenda for winter session includes bill on banning 'private cryptocurrencies' - Cointelegraph
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