On Monday, the Indian government provided updates on its cryptocurrency bill and investigation of crypto exchanges in the Lok Sabha, the lower house of parliament.
During the session, parliament member Bhartruhari Mahtab asked the Minister of Finance to the State about the current status of the cryptocurrency bill and when it would be open for public input. The cryptocurrency bill has been due for review since the winter of 2021.
Pankaj Chaudhary, the Minister of Finance to the State Government, replied by saying:
“Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation on the subject can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”
Pankaj didn’t give a specific timeframe on when the bill will be reviewed but mentioned that before anything is done, there has to be an international partnership and proper risk evaluation.
Mahtab also inquired about the body responsible for regulating digital assets, including Non-Fungible Tokens (NFTs), real estate tokens, and other blockchain-based assets. Pankaj stated that currently, the Ministry of Finance is in charge of policy related to crypto assets and the ecosystem surrounding them.
In addition to the cryptocurrency bill, the Minister of Finance also provided information on the ongoing investigation of 12 crypto exchanges accused of evading the Goods and Services Tax (GST). Four of the cases have been closed after paying the tax and interest, while the remaining eight are still under investigation.
According to the United Nations, approximately 7.3% of the Indian population owns and uses digital assets, and this number seems to be increasing despite the government’s stance on the sector.
Ajah Seth, the Secretary to India’s economic affairs, disclosed that the G-20 countries are working to build a policy consensus on digital assets for better regulation.
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