India’s Ministry of Finance has answered some questions regarding the state of cryptocurrency trading in the country as well as crypto regulation and investor protection. The Minister of State in the Ministry of Finance has indicated that the recommendations of the draft Bill proposed by the Inter-Ministerial Committee are still being considered.
Indian government answers crypto questions
The Indian Finance Minister was asked about cryptocurrency trading in the Lok Sabha, the lower house of the Parliament of India, on Monday.
The first question pertains to “The Status of Cryptocurrency Trading in India”. Mr. Pankaj Choudhary, Minister of State in the Ministry of Finance replied, “This information is not collected by the government.”
His reply reiterates what the Finance Minister said recently that the government does not collect information about the number of cryptocurrency exchanges or traders in India and has not reported any frauds committed by any exchange. has gone.
The second question was about “the current regulatory regime surrounding cryptocurrency and its trading”.
The Minister of State explained that the central bank, all entities regulated by the Reserve Bank of India (RBI), have been advised to carry out customer due diligence procedures in line with several norms, including Know Your Customer (KYC) norms. Anti-Money Laundering (AML) law, Prevention of Money Laundering Act (PMLA), and Foreign Exchange Management Act (FEMA) for foreign remittances.
Next, the finance minister was asked about laws to protect crypto traders and investors from “fraud and other misdemeanors in its business”. The minister replied:
Depending on the nature of fraud, various laws exist for fraud protection including the Indian Penal Code 1860.
The last three questions revolve around “does the government intend to introduce specific regulations for cryptocurrency trading in India”.
Starting with the announcement in the Budget speech of 2018-19, the Minister of State went on to give the same reply several times in Parliament, “The government does not consider cryptocurrencies to be legal tender or coins and to eliminate their use.” Will take all measures crypto-assets in financing illegal activities or as part of a payment system.”
The minister then referred to the Inter-Ministerial Committee (IMC) constituted under former finance secretary Subhash Chandra Garg, which is no longer holding a position in the government. The minister said that the IMC has “recommended in its report that all private cryptocurrencies, except any state-issued cryptocurrencies, be banned in India,” adding:
The government will take a decision on the recommendations of the IMC and the legislative proposal, if any, will be tabled in the Parliament after due process.
Recently, the Finance Minister revealed that the crypto cabinet note is up for consideration. However, the crypto bill is not listed in the list of items to be considered in this Parliament session.
What do you think about the answers to crypto queries provided by the Minister of State, Ministry of Finance? Let us know in the comments section below.
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