Early this year on January 29, the cryptocurrency bill was listed.  “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” is expected to create a facilitative framework providing for the creation of the official digital currency which can be issued by the Reserve Bank of India.

The Bill also seeks to prohibit all private cryptocurrencies in India.  However, in a way to not undermine the growth of cryptocurrency and its use in India, the bill was then listed for Introduction.  The old bill was not tabled in the previous sessions of the parliament and it has been reworked and a new bill has been introduced.

India expects a regulation of cryptocurrency through the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 listed in the ongoing Winter Session of Parliament

On November 30, 2021, Union Finance minister Nirmala Sitharaman said the government is about to introduce the new Crypto Bill in Parliament after it gets approved by the Cabinet.

The Finance Minister stated, “We are close to bringing a bill in Parliament. It will be introduced in the house once cabinet clears the bill.”

The Minister also expressed that cryptocurrency is closely monitored as it is a risky area and may lead to undesirable activities.

It is also stated that no decisions have been made about banning advertisements related to cryptocurrencies, but steps are taken through RBI and SEBI to create awareness.

No ready information is available on the recognition of Bitcoin as a currency, on the amount of tax that will be collected by the government on cryptocurrencies and bitcoin transactions.  It is expected that this bill when passed will promote all cryptocurrencies and its uses in India.

When asked about Non-Fungible Tokens (NFTs) the Finance Minister stated that its regulation is being discussed by the Center.

For clarity., As the name “non-fungible token” suggests, each NFT is a unique, one-of-a-kind digital item. They’re stored on public-facing digital ledgers called blockchains, which means it’s possible to prove who owns a given NFT at any moment in time and trace the history of prior ownership.

Investors have been cautioned about investing in cryptocurrencies; however, there is no obvious ban on advertisements campaigns related to cryptocurrencies.

When asked about applicable taxes on crypto trades, Sitharaman expressed, “Don’t have ready information about the amount of tax collected on cryptocurrencies.”

From the statements from the Finance Minister, it just looks like India might not doom cryptocurrency altogether with a blanket ban.