Cryptocurrency Bill awaited to be approved by the Cabinet informs FM Sitharaman

Finance Minister Nirmala Sitharaman has been waiting to get approval on the cryptocurrency bill that is already tabled before the Cabinet. The most awaited bill is said to be recommending the prohibition of all private cryptocurrencies except any virtual currency issued by the state. 

While speaking to the media on Monday, FM Nirmala Sitharaman said that an inter-ministerial panel on cryptocurrency has made such recommendations. The panel formed under the chairmanship of the Secretary of Economic Affairs for studying the issues related to virtual currencies and proposing specific action has already submitted its report and the bill is awaited. 

Further, she added that the Cabinet note is ready on the bill and she is merely waiting for the Cabinet to clear that. 

Cryptocurrencies in India

There have been several speculations on cryptocurrencies for a long time in India. The Reserve Bank of India has also expressed its concern regarding the trading of cryptocurrencies in the market and has also said the same to the government.

The Reserve Bank of India in March 2021 had allowed several banks and financial institutions for providing services related to cryptocurrency by putting aside its 2018 circular which prohibited them. In its circular, RBI restricted any central bank regular entity from providing services related to virtual currencies including the transfer or receipt of money. However, the circular was quashed by the Supreme Court of India. 

RBI Governor Shaktikanta Das has said that both the Central bank and the Finance Ministry are on the same side regarding the matter and are now awaiting the Centre's decision. There are reasons that the government will be in agreement with the concerns raised by the Central bank regarding cryptocurrencies, he added.

(Image Credits: PTI)