Report – Regulation

India is reportedly considering allowing only pre-approved cryptocurrencies and trading on exchanges. Additionally, the government aims to introduce and pass a cryptocurrency law by the end of the year.

Indian crypto regulation and pre-approved cryptocurrencies

India is considering allowing only cryptocurrencies that have been "pre-approved by the government" to be listed and traded on exchanges, Reuters reported on Thursday, citing two sources familiar with the discussions.

The approval process is intentionally cumbersome to discourage investors from holding cryptocurrencies, the sources said, adding that the government is unlikely to follow through on its previous measures plan to ban Cryptocurrencies. The publication quoted one of the sources as saying:

Only if a coin has been approved by the government can it be traded, otherwise holding or exchanging it may result in a penalty.

Additionally, several Indian news outlets reported that the government may introduce a cryptocurrency bill during the winter session of Parliament. Each cited unnamed sources. The winter session is scheduled to begin on November 29th and is expected to last until December 23rd.

CNBC-TV18 reported last week that Treasury Department officials are trying to “ Fast lane " a modified cryptocurrency bill. The Mint reported this week that the government plans to introduce it in the first week of the winter session once the crypto bill is approved by the Union Cabinet. However, Reuters wrote on Thursday:

The government intends to introduce and pass a cryptocurrency law in the parliamentary session starting this month.

Even Indian Prime Minister Narendra Modi has dabbled in cryptocurrency. On Thursday he has urged all democratic nations to work together to ensure that cryptocurrencies, including Bitcoin, “do not fall into the wrong hands, which can corrupt our youth.” It was his first public speech in which he specifically mentioned cryptocurrency and Bitcoin.

Last week the Prime Minister Chair a comprehensive meeting on cryptocurrency following a consultation process with the Central Bank, the Reserve Bank of India (RBI), the Ministry of Finance and the Ministry of Home Affairs.

Following Prime Minister Modi's meeting, India's Parliamentary Standing Committee on Finance held a Meeting with experts from the crypto sector. This was India's first parliamentary discussion on the broad topic of crypto finance involving the industry. The committee then called on the government to address its concerns about cryptocurrency.

What do you think about the Indian government's plan to regulate cryptocurrency? Let us know in the comments section below.

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