The Indian Government has given answers to the two main questions that have risen about the crypto bill and regulation. Bhartruhari Mahtab, the Parliament member, questions the ministry of finance to state “the current status of the cryptocurrency bill, which was due for being tabled during the winter session, 2021, of the Parliament.” In addition to “the timeframe within which the cryptocurrency bill would be tabled and subsequently be open for public inputs.”
Ministry of state in the Ministry of Finance Pankaj Chaudhary responded, “Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation on the subject can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”
The Indian Government Parliament member, Mahtab asked which ministry would be in charge of regulated crypto (the bill) and which would regulate other digital assets. Chaudhary answered, “Currently, policy related to crypto assets and related ecosystem is with the Ministry of Finance.”
Crypto Exchanges Being Investigated
Indian Parliament members asked questions regarding crypto exchanges that are under investigation. Chaudhary responds that the Enforcement Directorate “is investigating several cases related to crypto frauds wherein a few crypto exchanges have also been found involved in money laundering.” He explained that beginning on December 14th, “Proceeds of crime amounting to Rs. 907.48 cores have been attached/seized, three persons have been arrested, and four Prosecution Complaints have been filed before the Special Court, PMLA, in these cases.”
The minister continues by saying that 12 bitcoin exchanges are under investigation for avoiding paying the Goods and Services Tax (GST). 110.97 crore rupees have thus far been collected, including interest and penalties. Eight instances are in the process, while four cases are completed.
Chaudhary made the situation clear, saying, “Currently, crypto assets are unregulated in India. The Government does not register crypto exchanges.”
The G20 Nations
In October, India’s finance minister Nirmala Sitharaman mentioned. To create “a technology-driven regulatory framework” for cryptocurrencies, the Government intends to address crypto regulation with the G20 nations.
According to Ajay Seth, the economic affairs secretary of India, the G20 countries intend to develop a policy consensus on crypto assets. Sitharaman and U.S. Treasury Secretary Janet Yellen discussed cryptocurrency regulation last month at the ninth India-U.S. Economic and Financial Partnership conference.