Indian crypto bill: regulation likely to be graded than outright ban

December 1, 2021

By CNBCTV18 on the Web

Cryptocurrency and crypto assets would be regulated in a graded and responsible way, rather than an outright ban, said Amar Patnaik, a member of the Parliamentary Standing Committee on Finance. The government can regulate cryptocurrencies as an asset class and then see how the market unfolds for these assets, he said. Earlier last week, a bulletin in Lok Sabha had announced the government’s plan to ban all private cryptocurrencies.

Cryptocurrency bill: Regulation likely to be graded, responsible rather than outright ban, says Amar Patnaik
The cryptocurrency market has grown manifold and therefore, requires regulation, but we need to see if we can have a hybrid regulation for crypto assets and cryptocurrency, said Amar Patnaik, a member of the Parliamentary Standing Committee on Finance.

Speaking with CNBC-TV18, he said, “My view is that a decision should be taken quickly and we should regulate rather than ban” cryptocurrencies. Last week, a bulletin said the cryptocurrency bill seeks to ban all private cryptocurrencies in India in the Winter session of the Parliament.

The bulletin also said the government is seeking to promote the underlying technology of cryptocurrency and its uses. Patnaik said the cryptocurrency market has grown manifold and needs regulation, but the regulation initially would be a graded and responsible way to move forward rather than banning it completely.

The type of regulations depend on the regulatory capacity across the regulators, Patnaik added. The government can regulate cryptocurrencies as an asset class and then see how the market unfolds for these assets, he said.

Earlier in the day, Finance Minister Nirmala Sitharaman had informed Rajya Sabha that the government is coming up with a new bill on cryptocurrency and it will be introduced in the house once it is cleared by the Cabinet. The previous bill has been reworked, she said, adding that people should be cautious while investing in the asset class.

“Government has started an awareness campaign to alert people, but I agree more can be done to sensitize the public,” she said. However, the government has not taken any call to ban crypto advertisement by the exchanges.

She also said that risk with cryptos being used for undesirable activities is being closely monitored and discussed at various levels.

These latest developments came after the first-ever parliamentary panel on cryptocurrencies, led by BJP MP Jayant Sinha spoke with the representatives of the crypto exchanges and the Blockchain and Crypto Assets Council (BACC), and other industry bodies.

Source:  CNBCTV18

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