A note released by the Cabinet on December 2 on the proposed cryptocurrency bill has suggested regulation of private cryptocurrency instead of completely banning the currency, a NDTV report said.
The note claimed that cryptocurrency will not be recognized as India’s legal digital currency. Further, the legislation describes cryptocurrency as 'cryptoasset' and it will be dealt with the existing crypto exchange platforms which will be regulated by Securities and Exchange Board of India (SEBI). A cut-off date will be prescribed for those having cryptoassets to declare the same and bring under the crypto exchange platforms - which will be regulated by the market watchdog, as per the report.
The proposed virtual currency by the Reserve Bank of India (RBI) has not been clubbed with the new crypto bill. However, the central bank will regulate issues related to cryptocurrency, media report claimed.
Earlier this week during the Winter Parliament Session, Finance Minister Nirmala Sitharaman said the risk of cryptocurrency going in the wrong hands is being monitored. The minister also stated that the government has not banned cryptocurrency advertisements. Stating this in Lok Sabha, Sitharaman said, "This is a risky area and not in a complete regulatory framework. No decision was taken on banning its advertisements. Steps are taken to create awareness through RBI & SEBI. "
Sitharaman also added that the government has no proposal to recognise Bitcoin as a currency in the country and that the government does not collect data on Bitcoin transactions.
