Opposition MPs slam Centre's move to ban cryptocurrencies; bat for regulation instead

Opposing the Centre's move to ban private cryptocurrencies, Congress MP Abhishek Singhvi on Wednesday opined that banning them will be 'taking it too far', batting for regulatory control. He suggested that if one gets defrauded in crypt, there should be an option to take the complaint to some regulatory body. The Centre plans to table the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the upcoming winter session of the parliament.

Opposition MPs bat for regulation of cryptocurrency

Echoing similar sentiments, Shiv Sena MP Priyanka Chaturvedi too tweeted, "If true, this is a recipe for disaster India doesn’t need. Banning ALL private cryptocurrencies is basically killing the space- robbing India of creating an ecosystem for new age FinTech. Anyway, expecting any better from GoI was wishful thinking".

Centre to table Cryptocurrency bill

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 will outlaw all private cryptocurrencies in India with 'some exceptions'  to promote the underlying technology of cryptocurrency and its uses. The Reserve Bank of India (RBI) will establish its own digital money since investor money security and deceptive media promotions on such investment have long been a source of concern. Centre will also set a 3-6 month exit period prior to banning the trading, mining and issuing of cryptos. The bill is still under discussion and is yet to pass Cabinet approval.

Recently, the Parliamentary Standing Committee on Finance held a meeting with industry associations and experts on the matter ‘CryptoFinance: Opportunities and Challenges' and summed up that cryptocurrency cannot be stopped but must be regulated. The most serious concern raised by MPs was the security of investors' money highlighting the full-page cryptocurrency advertisements in national dailies. The govt is planning to regulate cryptocurrency and get it under the Centre's tax structure. PM Modi has also haired a meeting for cryptocurrency and related financial issues with the experts, discussing cryptocurrency's usage of avenues for money laundering and terror financing. 

Currently, India has two crypto unicorns namely CoinSwitch Kuber and CoinDCX. Many industry leaders have urged the government to take a nuanced approach towards regulating crypto assets in India. Companies have asserted that India is home to the highest number of crypto owners in the world and a nuanced bill would help India become the global leader in crypto, Defi, and NFTs.