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Crypto Bill may not be introduced in Budget Session; Here’s why

The Central bank has already expressed its concerns over the cryptocurrencies “from a macroeconomic and financial stability standpoint”.

Ashish Kumar

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Cryptocurrency in India
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New Delhi: The much-anticipated cryptocurrency bill which was scheduled to be presented during the winter session in the parliament last year, is likely to be postponed during this session as well.

As per reports, the India Government is discussing with stakeholders to frame policies around the cryptocurrency ecosystem in the country. The centre is observing the technical insights from the RBI’s pilot project over digital currency which is expected to be launched in this mid-year.

The Central bank has already expressed its concerns over the cryptocurrencies “from a macroeconomic and financial stability standpoint”.

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As per ET, an official from the finance ministry has said that digital currency is a complex issue and requires some more time, hence it will not be introduced in the budget session. The framework around will require synchronization with and amendments in various laws.

The government could consider levying TCS/TDS on the trading of cryptocurrencies above a certain limit.

Earlier, the government had considered an increasing tax on cryptocurrency trading by putting them within an income slab of 35-42 percent and imposing one percent of GST on cryptocurrency exchanges.

Prime Minister Narendra Modi on Monday referred to cryptocurrency as an example of challenges being faced by the countries and said the kind of technology that is associated with it will make decisions taken by one country insufficient to deal with challenges.

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“The kind of technology it (cryptocurrency) is associated with, the decisions taken by a single country will be insufficient to deal with its challenges. We need to have similar mindset,” he said.

Still, it will be interesting to see how government frame the initially called the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

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