India to bring crypto law by February, 2022
With the crypto sector gaining strength day by day, crypto law in India is still a few months away, as the government is likely to present it in the parliament in February 2022.
Earlier, the finance ministry that was responsible for the Cryptocurrency & Regulation of Official Digital Currency Bill was expected to clear it in the November 2021 parliament winter session.
Speaking to a national daily, a finance ministry official said that a law for cryptocurrencies would most likely come around by the time of the next general Budget.
The Reserve Bank of India (RBI) had proposed a complete ban on cryptocurrencies to the central government, but finance ministry’s proposed framework that opted for regulating cryptocurrencies as an “asset” class, somewhat on the lines of commodities, with appropriate taxation of transactions and gains.
The purpose of the regulations
Explaining the purpose of the regulations, the official said,
“What should not happen tomorrow is that if I start a personal digital currency, and after good marketing everybody buys it and once it has appreciated, I run away since I am a private player! Everybody has actually bought that currency by using other assets. Government needs to look at regulation in order to avoid the above”.
Today, India does not have any legal framework governing the issuance, use, and trade of cryptocurrencies. In 2019, a Finance Ministry committee had proposed a draft bill banning cryptocurrency, but the move was quietly scrapped.
However, it has been found in various studies and research that India is one of the top fastest growing cryptocurrency markets globally, which has an estimated 15 million users with a market exposure of over $7 billion.
There are many startups working in the crypto space employing 1000s of people. India is also the most looked nation for crypto workforce globally.