5 important things that were discussed in the parliamentary panel meet
Members of Parliament, business professionals, and associations told the parliamentary finance committee that cryptocurrencies could not be prohibited and that the next step should be to identify ways to regulate it. On Monday, the parliamentary standing committee met to address the current state of cryptocurrency in India, as well as the opportunities and problems it presents for both the government and stakeholders. The panel was chaired by BJP leader and former Minister of State for Finance Jayant Sinha.
The Parliamentary Standing Committee on Finance held its first meeting on the topic of crypto finance. The majority of those involved in the debate feel that bitcoin is here to stay and that the focus should be solely on regulating it. Around the same time last year, the government planned to outlaw cryptocurrencies, but things have changed since then. Crypto investments have surged, and it is becoming increasingly popular among young people.
There has been a lot of uncertainty surrounding cryptocurrencies in India up until now, but Monday's meeting provides us a sense of where things are headed. Here are five key points raised during the meeting.
Who will oversee cryptocurrency regulation?
It's no longer a question of if, but of when. We will undoubtedly have cryptocurrency restrictions in India. It remains to be seen when and how they will be introduced. The main topic of discussion at the parliamentary panel meeting was who will regulate cryptocurrency. The experts have left the formation of a body entirely up to the government. During the discussion, it was mentioned that the RBI may oversee cryptocurrencies, but the RBI has already stated that cryptocurrencies should be prohibited. So, time will tell whether we have a new body to regulate cryptocurrencies or if the government appoints an existing authority to monitor them.
For a long time, we've been hearing about a possible crypto bill. The administration is thought to have drafted one before the 2021 Union Budget. This law contains provisions to prohibit the use of cryptocurrency. Of course, it was scrapped, and a new law appears to be in the works. The identical bill was discussed at Monday's meeting. According to reports, the government is planning to introducing a new crypto bill during the first week of Parliament's Winter Session. The bill may prioritise greater investor protection.
Advertisements are issue?
The unexpected influx of marketing from cryptocurrency exchange sites has not gone unnoticed. Previously, India Today Tech reported on how crypto exchange companies are marketing Bitcoin and other cryptocurrencies as quick money and enticing young people to invest in them. The legislative commission also raised the matter, stating that these adverts were overly optimistic and lacked clarity regarding cryptocurrency.
RBI is still not convinced
The Reserve Bank of India (RBI) is still not convinced of the concept of cryptocurrencies. It has previously advocated for the outright prohibition of cryptocurrencies. According to an Economic Times storey, even during the meeting, the Central Bank was sceptical of the data supplied by the crypto-exchange platforms and stated that additional factors needed to be considered. Only a few days before the meeting, RBI governor Shaktikanta Das stated that cryptocurrencies pose a severe risk to any financial system since they are unregulated by central banks.
The aim is to protect investors
The majority of the conversation centred on guaranteeing investor safety. The government was briefed by representatives from crypto exchange platforms that there are around 15 million crypto investors in the country who have invested around Rs 600 crore in digital currency. The protection of investors' money is the most critical worry for all members, according to the MPs.
