There has been a boom in the popularity of cryptocurrency in India and it is likely that it will grow even more in the upcoming year. The Government of India has proposed a Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 to bring some changes to the cryptocurrency situation in the winter session of Parliament as it is unregulated, people are misinformed, falling for scams as well chances of malicious use. We have listed here some points from this proposed Crypto Bill 2021 in India.
Also, read | 11 Questions About Bitcoin In India Answered
Disclaimer: Below discussed points are based upon speculations and drafts and are subject to changes. We will update these points accordingly when the Bill arrives.
Crypto Regulation Bill 2021 India
The government is looking to regulate the Crypto market in India. This will come with proper guidelines and provisions and a well-defined framework. We will discuss some of the points that are expected to be a part of the bill.
This bill will affect and change several aspects of cryptocurrency trading and what will be its future in India.
Awareness and Regulation of cryptocurrency
The Central government’s draft will provide a framework that regulates the crypto market. Securities and Exchange Board of India (SEBI) will be overlooking it.
The draft discusses how volatile and unregulated the market is and many stable cryptocurrencies are held undisclosed. The bill will try to fix these issues and more.
“This is a risky area & not in a complete regulatory framework. No decision was taken on banning its advertisements. Steps are taken to create awareness through RBI & SEBI. Govt will soon introduce a Bill“, Finance Minister Nirmala Sitharaman on Cryptocurrency during Question Hour in Rajya Sabha on 30th November 2021.
There will be a provision prohibiting and banning misleading apps. Ads that spread misinformation through lucrative promises will also be banned.
Future of Crypto Trading and Holding
There could be a guideline for Indian crypto exchanges that will increase accountability and transparency and these exchanges will be regulated by SEBI.
The bill also suggests regulating cryptocurrencies like Bitcoin and Ethereum as crypto assets. These assets might be treated similarly to commodities. Individuals will have to disclose their crypto assets to the Government.
If they are stored in a private wallet then one would have to transfer them to SEBI-regulated exchanges and wallets.
This declaration and transfer of crypto assets could be a move to prevent malicious activities. However, it also suggests that the Government may ban the use of private crypto wallets and introduce their own wallet for transparency but this is still speculation.
It is also left to be seen how these changes will affect the NFT market in India as they have seen a huge gain in popularity too.
Related article | What is NFT? How NFTs Work and Should You Invest in Them?
India’s Own Digital Currency
This Bill also aims to lay down regulations and foundations that will in the future help in introducing India’s own digital cryptocurrency that will be issued by The Reserve Bank Of India (RBI).
One thing is clear, this Bill will not allow cryptocurrency to be used as a legal tender to make any sort of payments or transactions so you will have to first sell your cryptocurrency on exchanges. Maybe once we have set up our own digital currency then we could use it for payments.
Wrapping Up
This was all about the Crypto bill 2021 in India. Currently, the Indian cryptocurrency atmosphere is very unregulated but shows promise of growth. It is said to be the currency of the future but its regulation is still essential. We hope that when the bill arrives, it comes with provisions that help boost the crypto market while also eliminating some of its cons.
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