The Indian government may not introduce a crypto bill in the upcoming session of Parliament, the Economic Times reported Wednesday.
The government wants to hold more discussions and build consensus on the regulatory framework for cryptocurrency, the publication conveyed, citing unnamed government officials with knowledge of the matter. A senior finance ministry official told the publication:
The crypto bill may not be introduced in the budget session. It is a complex subject. This will require more time.
A cryptocurrency bill was listed to be considered in the winter session of parliament but it was not taken up. The government is now reportedly reworking the bill.
The official further explained to the news outlet that the government wants to wait for technical inputs from the central bank, the Reserve Bank of India (RBI), after the pilot launch of its central bank digital currency (CBDC), the digital rupee. The pilot launch is expected to take place in the coming months.
India’s central bank has recommended a complete ban on cryptocurrency. In its recent meeting of the central board of directors, the RBI said that a partial ban will not work. The central bank has repeatedly warned about the risks cryptocurrency poses to the country’s financial system.
Earlier this week, Indian Prime Minister Narendra Modi called for a global collaboration to tackle the challenges brought by cryptocurrency.
Meanwhile, the Indian crypto industry is seeking tax clarity in the Union Budget. The country’s Directorate General of GST Intelligence (DGGI) recently raided major crypto exchanges and found “massive” GST tax evasion.