Unlike any other western nation, India has been planning to opt for a different approach for regulating cryptocurrencies, said the Chairman of the Parliamentary Committee on Finance Jayant Sinha.
While addressing an online event organized by the Blockchain and Crypto Assets Council (BACC) of Internet and Mobile Association of India (IAMAI), he stated, “Our solution will have to be distinct and unique simply because of our unique circumstances. We have to balance stability and growth but we recognize how important this whole area of crypto is.”
Sinha further mentioned that India needs to prepare crypto legislation keeping national security issues in mind.
He stated that in today’s time, cryptos are not only being used for terror financing, but they are also becoming a threat to domestic security.
“We have to be very watchful about what happens to these crypto-assets and cryptocurrencies. Use of these kinds of crypto instruments in terror financing and for domestic security threats is something we want to be mindful of,” said the lawmaker.
He further mentioned that several countries around the world have their own crypto-laws, but India could not replicate them, because the country does not possess full capital account convertibility.
The Chairman of the Parliamentary Standing Committee on Finance added, “In this process, crypto exchanges like CoinSwitch Kuber are more than willing to work alongside the regulators and policymakers to define laws that keep the nation’s interest in mind.”
A month ago, the Finance Minister of India Nirmala Sitharaman informed that the government is waiting for the cabinet’s approval over the proposed law for the cryptocurrency.
The government also formed an interministerial committee on cryptocurrency to analyze issues related to it and suggest specific measures to resolve those issues. The interministerial committee has already submitted its report, proposing that all private cryptocurrencies, except the virtual currencies in the state, should be banned in India.
In the meantime, RBI also raised its concern regarding cryptocurrencies in front of the Indian Government.
Shaktikanta Das, RBI Governor, emphasized the government and the central bank’s commitment to financial stability is quite similar. He said, “We should now await the final decision on the matter from the Centre.”