Crypto Analytics

Former finance minister doubts the Indian government understands crypto

The Indian government has failed to submit the cryptocurrency bill that was slated for the winter session of parliament. Former Treasury Secretary Subhash Chandra Garg says he has no confidence in the Indian government’s ability to figure out cryptocurrencies. Garg chaired the inter-ministerial committee that drafted the original crypto bill, which proposed banning cryptocurrencies like bitcoin.

India fails to reintroduce crypto law in parliament

The Indian government failed to put in place the cryptocurrency law that was Listed for inclusion in the winter session of Lok Sabha, the lower house of the Indian parliament. The session ended on Thursday.

Commenting on the government’s failure to enact crypto law, former Treasury Secretary Subhash Chandra Garg told the IANS publication Thursday that “he has no confidence in the government’s ability to figure out the complexities of this new crypto phenomenon,” the company said News agency with. He was further quoted as saying:

I expressed serious doubts when the government announced its intention to bring the bill introducing the Crypto Assets / Currencies Bill to the winter session of Parliament. So I am not surprised to see the current situation where there is no clarity on the bill.

The Indian government has not revealed what is on the crypto bill. However, there are reports that the government has decided to Regulate crypto assets but prohibit its use of cryptocurrencies for payments. The country’s finance minister, Nirmala Sitharaman, recently said the bill revised.

The original crypto bill was designed of the Interministerial Committee (IMC) headed by Garg. The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” proposed to ban all cryptocurrencies and regulate digital currencies issued by the central bank, the Reserve Bank of India (RBI). Garg, who has resigned from his government job, now believes that crypto assets should be regulated as a commodity.

This marked the second time the Indian government failed to get a crypto bill after putting it on the parliamentary agenda. The first time was in Budget meeting in February.

According to Garg, the Indian government is caught between two opposing sides: the RBI and the crypto industry. Noting that the government appears unable to make a decision, he described:

The Reserve Bank of India (RBI) believes that crypto technology and businesses are only in the currency business and is constantly pushing the government to ban cryptocurrencies and legally authorize RBI to issue digital banknotes.

The RBI said at its most recent central board meeting that cryptocurrencies must be banned completelystressing that a partial ban will not work. RBI Governor Shaktikanta Das has reiterated several times that the central bank is serious and Main concern regarding cryptocurrencies.

Garg added, “The cryptocurrency exchanges that use the other side’s power want the government to treat cryptocurrencies as assets and create a regulatory mechanism for them by law.”

He explained that the government is also facing other critical issues including the potential misuse of crypto for hawala and money laundering, billions of dollars worth of investments fleeing overseas, and crypto investors not paying capital gains tax.

Indian Prime Minister Narendra Modi recently said that cryptocurrency should be used to Strengthen democracy and does not undermine it. He urged Democratic countries Work together to ensure cryptocurrencies don’t fall into the wrong hands. Last week was his Twitter account chopped and a tweet was posted stating that India adopted Bitcoin as legal tender and bought the government BTC to distribute to the residents.

What do you think of India’s again not introducing a crypto law in parliament? And what do you think of Garg’s comments? Let us know in the comment section below.

Kevin Helms

Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

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