Centre likely to move modified cryptocurrency bill at start of Parliament's Winter Session

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The Centre is likely to move a modified bill on cryptocurrency at the start of Parliament's Winter Session, CNBC TV-18 reported on November 8.

Sources told the news channel that finance ministry officials are working towards modifying the proposed cryptocurrency legislation. An earlier draft of the bill proposed a ban on the use of the digital currency in India.

The finance ministry officials are trying to "fast track" the modified cryptocurrency bill, the report said.

The Winter Session of Parliament, when the legislation is expected to be taken up, is scheduled from November 29 to December 23.

Sources: Govt likely to move cryptocurrency #bill at the start of the winter session of parliament

Work on modifying proposed #cryptocurrencybill; earlier draft proposed a ban

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Fin min officials trying to “fast track” #modified#cryptocurrency bill pic.twitter.com/k7Q4Pi0faw

— CNBC-TV18 (@CNBCTV18Live) November 8, 2021

“A balance has to be found,” the report cites a person as saying, adding that a final call on the details of the proposed law would be taken shortly. “A middle path that balances the concerns of all stakeholders is more likely.”

The person added that the bill would take into account the technological developments in the digital asset space, which the earlier draft lacked.

Notably, the Reserve Bank of India had banned cryptocurrencies but the order was struck down by the Supreme Court in March 2020.

The government, which has talked about regulating cryptocurrency, said it was working with different stakeholders. Finance Minister Nirmala Sitharam had told The Economic Times that the government was “not against cryptocurrency and will instead look into ways it can help the country's fintech sector”.

The report comes days after market regulator Sebi barred investment advisers from advising on unregulated instruments, which includes cryptocurrencies, digital gold and other such products.

"It has come to the notice of SEBI that some registered investment advisers are engaged in unregulated activity by providing platform for buying/ selling/ dealing in unregulated products including digital gold," Sebi said on October 21.

Notably, India's cryptocurrency market expanded 641 percent in the past year, driving growth of digital currencies in central and Southern Asia, according to a report by Chainalaysis.

The cryptocurrency market in Pakistan expanded by 711 percent last year, the report added. Three countries from the Central & Southern Asia and Oceania (CSAO) region are part of Chainalysis' Global Crypto Adoption Index - Vietnam at number one, India at two, and Pakistan at three.