Governance

Bill on cryptocurrency awaiting Cabinet approval, Govt to decide on Ban or Asset Class soon

An inter-ministerial panel on cryptocurrency has recommended that all private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India.

Cryptocurrency bill, the much-awaited legislation to regulate virtual currency in India, is expected to be taken up by the Union Cabinet soon. A high-level committee headed by the secretary (economic affairs) had already submitted the report on cryptocurrency.

“Cabinet note is ready on cryptocurrency (Bill). I am awaiting Cabinet to clear that,” Finance Minister Nirmala Sitharaman informed that the proposed legislation on cryptocurrencies has been tabled before the Cabinet and awaiting its approval on Monday.

An inter-ministerial panel on cryptocurrency, chaired by Secretary (Economic Affairs), to study the issues related to virtual currencies and propose specific actions has already submitted its report. It has been recommended that all private cryptocurrencies, except any virtual currencies issued by a state, will be prohibited in India.

The Union Cabinet is India’s highest decision-making body. Only the Prime Minister, Narendra Modi, and other ministers of rank are a part of the Cabinet. The supreme body needs to give the green light before the new laws can be introduced for debate in Parliament.

The largest cryptocurrency in terms of market cap, Bitcoin has soared around 50% from its lows last month. It had gone below the $30,000 mark around this time in the last month. According to the data from CoinMarketcap.com, Bitcoin dominates the market with 43.38% share, followed by Ethereum that holds an 18.81% market share. Ethereum has risen by over 60% in the last one month.

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