Cryptocurrency Regulation Bill Unlikely To Be Introduced In Budget Session; Know Why

The Centre wants to hold more discussions on building consensus on the regulatory guidelines as the bill is still not completely ready, according to report

Prime Minister Narendra Modi wanted global deliberations on crypto regulations, which he had suggested in his address at the World Economic Forum. Image: Getty

New Delhi: The government is unlikely to introduce the much-awaited cryptocurrency bill in the upcoming Budget session of Parliament, according to news report.

The Centre wants to hold more discussions on building consensus on the regulatory guidelines as the bill is still not completely ready.

The central government also wants to wait for the launch of the centrally controlled digital token by the Reserve Bank of India (RBI) which is expected in a few months.

The central bank in July last year had said that it was working towards its own digital currency, Central Bank Digital Currency (CBDC). CBDC refers to the virtual form of a fiat currency. It is a legal tender issued by a country’s central bank in a digital format.

The RBI has already expressed its concern over cryptocurrencies from ‘macroeconomic and financial stability standpoint’.

According to reports, another reason for the delay may be the lack of consensus over the taxation framework for digital currencies.

Recently, Prime Minister Narendra Modi wanted global deliberations on crypto regulations, which he had suggested in his address at the World Economic Forum (WEF). Speaking at the virtual summit of WEF on Monday, Modi had called for synchronised global action to regulate cryptocurrencies.

The government was supposed to table the bill on regulating private cryptocurrencies in the winter session of Parliament. However, the bill was not introduced as the government had not finalised the details of its legislation.

The Budget Session of Parliament will start on January 31 and conclude on April 8. The first part of the session would end on February 11. After a month-long recess, the second part of the session would begin on March 14 and conclude on April 8.