The government is soon going to bring a bill on cryptocurrency.
Reserve Bank of India (RBI) Governor Shaktikanta Das said that the central bank is working on a digital currency. Which will be completely different from cryptocurrency. We do not want to be left behind in the era of the technological revolution. There is a need to adopt the advantages of blockchain technology. He also said that there are some important concerns regarding cryptocurrency. Earlier, the government also said in Parliament that it would soon bring a bill on cryptocurrency, as the current law is inadequate.
In India, there is no such legal currency as cryptocurrency legal tender. Hence taxation on cryptocurrency is a disputed issue and it can cause legal problems.
The government will soon bring bill on cryptocurrency
The government will soon bring a bill on cryptocurrency as the existing laws are not sufficient to deal with matters related to it. Minister of State for Finance Anurag Singh Thakur gave this information in the Parliament. He said that regulatory bodies like RBI and SEBI do not have any legal system to directly regulate cryptocurrencies. Because they are not currencies, assets, security or commodities issued by identifiable users. The current laws are not sufficient to deal with this matter. Let me tell you, an Inter-Ministerial Committee has submitted its report on matters related to virtual currency. The committee of secretaries led by the Cabinet Secretary has also submitted its report.
A bill on cryptocurrency is being finalized and it will be sent to the cabinet soon. The RBI had in a circular in April 2018 suggested to all the units not to deal in virtual currency (VCs) or to help any person or entity doing the deal or VC settlement in it. Please also tell here that the Supreme Court had canceled the RBI circular in a decision on 4 March 2020.