Thursday, September 29, 2022

Indian Government To Go Through IMC’s Crypto Report For Making Decision, Says MoS For Finance

During the Monsoon Session of Parliament, the Ministry of Finance shared its views on crypto regulations, the status of crypto trading and investor protection in India. 

Pankaj Chaudhary, the Minister of State for Finance (MoS Finance), recently while addressing the session, stated that the government is still considering the Interministerial Committee’s (IMC) recommendation.  

On August 02, while answering the questions related to crypto trading in Lok Sabha, MoS Finance said that presently, the government does not have any information regarding the status of crypto trading in the country. 

Chaudhary echoed the statement of the Indian Finance Minister Nirmala Sitharaman, in which she notified that government did not collect the number of crypto exchanges and traders data in the country. 

The MoS was further asked about the “current regulatory regime surrounding cryptocurrency and its trading”, to which he replied that all RBI regulated entities have been ordered to continue customers due diligence processes in line with a number of regulations, which include know your customer (KYC) standards, anti-money laundering (AML) law, Prevention of Money Laundering Act (PMLA) and Foreign Exchange Management Act (FEMA) for overseas remittances. 

Chaudhary was then asked about the laws that have been implemented in the country to protect crypto investors from fraud. He said, “Depending upon the nature of the fraud, various laws including the Indian Penal Code 1860, are in place for protection against fraud.”

Lastly, the opposition asked the MoS whether the Indian government is planning to introduce crypto trading-related regulations in the country. The MoS gave the same answer which already had been echoed several times in the parliament. Chaudhary said, “The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.”

He further mentioned that the report released by the inter-ministerial committee (IMC), which was introduced by the Former Secretary Subhash Chandra Garg, had specified “all private cryptocurrencies, except any cryptocurrency issued by the state, be prohibited in India.”

Further, the report explained, “The government would take a decision on the recommendations of the IMC and the legislative proposal, if any, would be introduced in the parliament following the due process.”

A few weeks ago, the finance minister of the country disclosed that the crypto cabinet note, on which it has been working, would soon be released for consideration. However, during the Monsoon Session, the government did not present the crypto bill in Parliament.

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