No Steps Taken Yet To Curb Crypto Advertisements, Says Nirmala Sitharaman

Finance Minister informed the House that steps are taken to create awareness about cryptocurrencies through the RBI and Sebi

Finance Minister Nirmala Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday said that no decision was taken on banning advertisements on cryptocurrencies in India. In a reply to a question asked on banning cryptocurrencies in the country, the finance minister in Rajya Sabha said that this is a risky area and not in a complete regulatory framework.

“Keeping the propriety of the House, any answer now will pre-empt the discussion which will come with Bill. That discussion would be held," Sitharaman said during the Question Hour in the Rajya Sabha. “No steps taken yet to curb advertisements about cryptocurrency, but investors have been cautioned. More will come with the Bill,” the minister said, adding that the previous Bill on cryptocurrency has been reworked. 

Steps are taken to create awareness through the RBI and Sebi. Cautioning people, she said that people investing in cryptos should be careful. “The government has started an awareness campaign to alert people but I agree more can be done to sensitize the public. Risk that cryptocurrencies can lead to undesirable activities is being closely monitored. It is being discussed at various levels," she added.

The central government will come up with a new Bill in Parliament during the ongoing winter session to regulate all private cryptocurrencies, the minister said. The Bill is aimed at creating guidelines to regulate digital currencies.

Reserve Bank of India Governor Shaktikanta Das had earlier also issued warnings on trading in digital currencies. Das said that debate and discussions were needed before formal introduction of cryptocurrencies in India. He has also said that even though the value of transactions in virtual coins has gone up, about 80 per cent of the accounts have a balance of less than Rs 2,000.

Meanwhile, MP Sushil Kumar Modi demanded a separate legislation for non-fungible tokens (NFTs). During the Question Hour in Rajya Sabha, he asked how many people have paid income tax on cryptocurrency earnings.

“There is no stated policy or instruction given to banks to not give loans to government employees. But banks exercise certain level of discretion on the basis of available KYC,” SItharaman told the House when MPs raised issues of banks’ reluctance to lend to government officials.