The Indian Financial Minister Nirmala Sitharaman disclosed on Monday that the government was preparing new cryptocurrency laws amid rumors that investors may have an exit option.
These laws could potentially be adopted by the Union Cabinet in a bid to govern cryptocurrencies and their growth in India. An inter-ministerial group on cryptocurrencies, led by the Secretary (Economic Affairs) recommended that all private cryptocurrencies except those issued by the state should be prohibited in the country.
Although cryptocurrencies will not be out-rightly banned by the impending laws, they will not be accepted as legal tender either.
Speaking to reporters during an interview, Ms. Sitharaman confirmed that the draft cryptocurrency law had been submitted before the Cabinet and is awaiting approval.
“Cabinet note is ready on cryptocurrency (Bill). I am awaiting Cabinet to clear that.”
India’s stance on cryptocurrencies has been quite unstable. Since February, there have been reports suggesting that the government is looking to ban cryptocurrencies. However, by May, it appeared the government was leaving the decision to accept or reject crypto transactions with individual banks.
Sitharaman has aired her views about cryptocurrency in the past. She suggested that the government is not interested in shutting down all options, and investors will be given room to try out blockchain technology and cryptocurrency.
Similarly, the Reserve Bank of India (RBI) through its governor Shaktikanta Das stated that there are no disagreements between the central bank and the Finance Ministry when it comes to cryptocurrencies, and the government agrees with the RBI’s “major concerns” regarding cryptos.
Everyone is awaiting a final decision on the matter.