The Finance Minister Says the Law is Awaiting Cabinet Approval

Finance Minister Nirmala Sitharaman said on Monday that the law is awaiting Cabinet approval on a bill regulating cryptocurrencies because the draught legislation is before it.

The Law Is Awaiting Cabinet Approval, Finance Minister Says Sitharaman

The inter-ministerial group on cryptocurrencies, chaired by the Secretary of Economic Affairs, has already presented its report on the challenges surrounding virtual currencies and proposed specific steps.

It has proposed that all private cryptocurrencies, except state-issued virtual currencies, be outlawed in India.

“A cabinet note on cryptocurrencies is ready” (Bill). “I’m waiting for Cabinet to clarify that,” she stated during a press conference here.

Meanwhile, the RBI has expressed its worries to the government about the cryptocurrencies traded in the market.

Underscoring that both the government and the RBI are “committed to financial stability,” RBI Governor Shaktikanta Das stated that there are no disagreements between the central bank and the Finance Ministry on the subject, and that “we should now await the final decision on the matter” from the Centre.

Das stated that he had «reasons to think» that the government agrees with the RBI’s «serious worries» regarding cryptocurrencies.

In March, SC Ask Banks And Financial Organizations Could Provide Cryptocurrency-related Services

In March, the Supreme Court overturned the RBI’s 2018 circular, which had barred banks and financial institutions from offering cryptocurrency-related services.

Cryptocurrencies are digital or virtual currencies that operate independently of a central bank and utilize encryption methods to govern the production of their units and verify the movement of cash.

“As a result, the writ petitions are granted, and the circular dated April 6, 2018, is set aside,” the bench, which also included justices Aniruddha Bose and V Ramasubramanian, stated.

   

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