Jayant Sinha, chairman of the Parliamentary Standing Committee on Finance, said the parliamentary panel will consider the proposed legislation on cryptocurrencies with national security in mind. Mr. Sinha who was the Minister of State for Finance during last Lok Sabha (2014-19) was speaking at an event organized by the Internet and Mobile Association of India (IAMAI).
In August, Indian Finance Minister Nirmala Sitharaman told reporters that the Union Cabinet is soon expected to approve the bill to regulate the growing cryptocurrency market. Over the past several months, the government sources have confirmed that they are not looking for an outright ban as reported. The government is also looking to book tax revenue from crypto transactions and the flourishing crypto sector.
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“Our solution will have to be distinct and unique simply because of our unique circumstances,” Sinha was quoted by Bloomberg. “We have to balance stability and growth but we recognize how important this whole area of crypto is.”
IAMAI, the industry body representing tech start-ups had recently set up a Blockchain and Crypto Assets Council (BACC), a formal board to oversee the implementation of a self-regulatory code of conduct for member crypto exchanges.
Speaking at the event the former minister ruled out replicating advanced economies on virtual currencies as the nation still doesn’t have a full capital account convertibility.
“We have to be very watchful about what happens to these crypto assets and cryptocurrencies,” said Jayant Sinha, chairman of the Parliamentary Standing Committee on Finance. “Use of these kind of crypto instruments in terror financing and for domestic security threats is something we have to be mindful of.”
India’s approach toward cryptocurrencies has evolved over time. The government which was considering an outright ban in early this year is now contemplating to regulate the virtual assets.