India’s Cryptocurrency Legislation Will Be Distinctive and Unique,” ​​Lawmakers Say – Regulation Bitcoin News

The chairman of India’s Parliamentary Standing Committee on Finance says cryptocurrency legislation in India will be “distinctive and unique.” He added: “We have to balance stability and growth, but we know how important this whole cryptocurrency space is.”

Lawmakers provide an update on crypto legislation

Jayant Sinha, a lawmaker from the ruling Bharatiya Janata Party, spoke about India's cryptocurrency legislation at an event organized by the Blockchain and Crypto Assets Council (BACC) of the Internet and Mobile Association of India (IAMAI) on Wednesday.

Sinha, the chairman of the Standing Committee on Finance of India, explained that it is not possible for India to adopt the cryptocurrency policies used in advanced economies as the country still does not have full capital account convertibility. He clarified that India's crypto policy will not follow the US, Japan or El Salvador, the country that did this Bitcoin legal tender this week.

The legislator stated:

Our solution must be clear and unique simply because of our unique circumstances. We need to balance stability and growth, but we know how important this whole cryptocurrency space is.

Additionally, he noted that the committee will examine crypto legislation with national security in mind, adding: "We need to be very vigilant about what happens to these crypto assets and cryptocurrencies. The use of such crypto instruments in terrorist financing and domestic security threats is something we need to be aware of."

On Tuesday, a former deputy governor of the Reserve Bank of India (RBI), R. Gandhi, said that crypto in India needs to be regulated as an asset or commodity and governed by existing laws. He explained: “Once cryptocurrencies are accepted, rules could apply to the exchange of goods and the coins could be used to pay for goods and services,” Bloomberg said, quoting him as saying: “Then people can automatically start buying, selling and holding.”

According to a recent Test report, the Indian government plans to regulate crypto assets as commodities and by use cases. Previously, there were reports that the government was planning to ban all cryptocurrencies such as Bitcoin, allowing only central bank digital currencies (CBDCs) to be issued by the RBI. Meanwhile, the central bank plans to reveal a digital rupee model by the end of the year.

What do you think of India’s approach to crypto regulation? Let us know in the comments section below.

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