FM Nirmala Sitharaman shares crucial update on …

Finance Minister Nirmala Sitharaman shared a crucial update about the governments new cryptocurrency bill on Tuesday. Speaking in Parliament, the finance minister said the government will be coming up with a completely new bill on cryptocurrencies once it gets cabinet clearance, adding that the previous bill has been reworked.

She also clarified that the description of the crypto bill listed in the Lok Sabha bulletin was old, adding that the reworked crypto bill will be presented before the cabinet for approval soon. The bill mentioned is an old bill and the new bill is being worked at and will be presented in front of Cabinet soon, Sitharaman said during the question hour in the Rajya Sabha.

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"That bill has been reworked. So, the intent was to either approve the bill or come up with a proposal that is going to be far more recent. Now, we are coming out with a new one. The earlier attempt was also to come up with a bill. But, later a lot of things had to come into play, so we started working on a new bill. Once the Cabinet clears it, it'll come here in the House," the minister added, she added.

Her statement comes at a time when the entire cryptocurrency ecosystem in the country awaits anxiously, fearing that the new bill aims to prohibit private cryptocurrencies while paving the way for the RBI to come up with its version of a digital coin or currency.

The finance ministers fresh statement is likely to provide some relief to cryptocurrency firms and startups who were contemplating a move to exit the country if virtual coins are banned. It will also provide relief to panicked individuals who have invested heavily in cryptocurrencies.

It may be noted that the government is likely to introduce the Cryptocurrency and Regulation of Official Digital Currency, 2021, during the Winter Session of Parliament. The official description of the bill stated: The bill seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.

Nirmala Sitharaman has now clarified that the description mentioned in the Lok Sabha bulletin was an old one and the government plans to introduce the reworked bill during the ongoing Winter Session. The bill will be introduced in Lok Sabha as soon as it gets clearance from the cabinet.

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"There were other dimensions and the bill had to be reworked and now we are trying to work on a new bill," she said.

Nirmala Sitharaman said the government is also monitoring the risk of cryptocurrencies going in the wrong hands. The risk of cryptocurrency and it going in the wrong hands is being monitored," she said.

The finance minister also highlighted that investors need to be cautious, citing warnings from the Reserve Bank of India and the market regulator Securities and Exchange Board of India. She reiterated her warning, underlining the fact that cryptocurrencies remain unregulated in the country and no data on such transactions is collected by the government.

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Responding to a question, Nirmala Sitharaman also said that the government has not yet taken any decision to ban advertisements related to cryptocurrencies in the country. "This is a risky area and not in a complete regulatory framework. No decision was taken on banning its advisement," Sitharaman said.

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