The government will quickly bring a bill on cryptocurrencies as existing legal guidelines are inadequate to deal with issues regarding them, Minister of State For Finance Anurag Thakur informed Rajya Sabha on Tuesday.
Replying to a question in the Upper House, Thakur stated regulatory bodies like the Reserve Bank of India and Securities and Exchange Board of India do not have any prison framework to directly regulate cryptocurrencies as they are not currencies, assets, securities, or commodities issue through identifiable users.
“The existing government legal guidelines are inadequate to deal with the subject,” he said.
The government had formed an Inter-Ministerial Committee which has given its report on problems related to virtual currencies. There was further a meeting of the Empowered Technology Group. The Committee of Secretaries chaired by the Cabinet Secretary has also specified its report.
“A bill (on cryptocurrencies) is deciding. And it will rapidly be forward to the Cabinet. We will quickly be bringing a bill,” Thakur said.
In view of the risks related to Virtual Currencies, including Bitcoins, the RBI through a circular in April 2018, had recommended all the entities regulated by it not to deal in digital currency or provide services for facilitating any person or entity in dealing with or settling digital currencies.
However, Supreme Court, vide judgment dated March 4, 2020, had set aside the RBI’s circular.
To another query regarding Chinese companies in the country, the minister said. There are around 92 companies registered in the country. Out of them, 80 Chinese companies registered are actively working in India.