The Indian government may still be considering a bill that could ban certain cryptocurrencies in the country, but lawmakers are unlikely to vote on a bill in the current parliamentary session.
According to a post on Friday, the Lower House of India’s Parliament is likely to Lok Sabha, a bill that proposes a ban on “all private cryptocurrencies”, not to study before the end of the winter session on Thursday. The bill on cryptocurrencies and the regulation of the official digital currency does not appear as one of seven bills on the agenda of the government agency in the final days of its 2021 session.
A November 23rd bulletin for the Lok Sabha It stated that Indian lawmakers could vote on laws that would create “an enabling framework for the creation of the official digital currency” issued by the country’s central bank, the Reserve Bank of India. In addition, the bill proposed banning certain cryptocurrencies. The same bill was previously on Parliament’s agenda but did not result in a vote on the regulatory framework or the legal status of digital assets.
In March 2020, the Supreme Court of India lifted a blanket ban on cryptocurrencies that had come into force two years earlier and was imposed by the Reserve Bank of India. Since then, reports from many local media outlets, as well as statements from officials, suggest that the government is considering various solutions to regulate or possibly ban digital assets.
Even if the Indian parliament doesn’t deal with cryptocurrency legislation, India’s President Ram Nath Kovind could issue an ordinance to expedite the bill if the Lok Sabha not in session, probably between December and January. It appears that officials from India’s Treasury Department are also investigating a legal framework that could turn cryptocurrencies into commodities rather than currencies.
With a population of around 1.4 billion people, India’s decision to create a concrete legal framework for a digital central bank currency and to ban many token projects is likely to have a major impact on the entire sector. After the bill was put on Parliament’s agenda in November, the WazirX cryptocurrency exchange saw sell-offs that resulted in significant price drops for Bitcoin (BTC), Ether (ETH) and other tokens.