Indian PM Modi Will Take Final Call On Crypto Regulatory Framework

Indian Prime Minister Narendra Modi will take a final call on the regulatory framework for cryptocurrencies amid conflicting views, financial newspaper Economic Times reported on Friday. 

A high-level meeting was held on Thursday to consider all options as well as the views of the stakeholders, including the concerns expressed by the Reserve Bank of India.

One of the persons said that options include a complete ban on private cryptocurrencies, a partial ban, regulation of all categories of crypto products, or a select few.

The second person said deliberations are likely to continue on Friday before deciding on the framework. 

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is listed for consideration and passing in the ongoing winter session of Parliament.

The draft bill for the cryptocurrency has been finalized by the finance ministry, but some sections of the government felt that more detailed discussions might be needed, according to the report, citing two individuals familiar with the development.

Officials are likely to meet later in the day to work out a final consensus on the bill, the report said. The bill is expected to be introduced in the current session of Parliament.

The finance ministry did not immediately respond to a Reuters request for comment.

Earlier this week, Reuters reported that a proposed law banning the use of cryptocurrencies as a method of payment in India also seeks to arrest violators of the law without warrant.

The proposed bill also seeks to create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank. It aims to ban private cryptocurrencies in India, while allowing some exceptions to promote the underlying technology.