Centre appears to shelve plans to ban cryptocurrencies

The Narendra Modi government appears to have shelved its plans to bring a bill to ban cryptocurrency at least for the time being following differences with the ruling BJP and the government.

The Cryptocurrency and Regulation of Official Digital Currency Bill did not find space in the tentative list of 15 proposed legislations that may come up before Parliament during the Budget Session, which started on Monday though it was listed in a similar list two months ago ahead of the Winter Session.

The government has also not listed a proposed bill to privatise two public sector banks, which was on the agenda during the Winter Session. However, there were strong objections from the Opposition following which it was not brought to the House.

The Budget presented on Monday announced the introduction of digital currency in the fiscal while imposing a 30% tax on digital assets. The imposition of tax is read as an indication that the government doesn't have immediate plans to ban cryptocurrencies.

Just before the Winter Session last November, the government had told the Parliament that it wanted to bring the Bill to create a "facilitative framework" for creation of the "official digital currency to be issued by the RBI".

"The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses," it had said.

However, sources said, differences within the BJP and government stalled its introduction in Parliament. It did not even reach the Cabinet for discussion, sources said, adding that the difference of opinion has not been reconciled yet leading to its omission from the tentative list of Bills that may come up during the Budget Session.

This, sources said, does not mean that the government cannot introduce the Bill during the later part of the Session. Anyway, there will be no legislative business during the first leg of Budget Session between January 31 and February 11 as there is practically no time for any such business after discussions on Motion of Thanks to the President's address and Budget.

Though the Bill has not been listed, the Parliamentary Research & Training Institute for Democracies (PRIDE) of the Lok Sabha Secretariat is organising a lecture for MPs on 'Understanding Cryptocurrency and its Impacts on Indian Economy' on Wednes

Besides the Finance Bill 2022, the other proposed legislation that may come up before the Parliament include The Warehousing (Development and Regulation) Amendment Bill 2022, The Competition (Amendment) Bill 2022 and The Identification of Prisoners Bill 2022

The amendment on laws related to warehouses including strengthening warehousing development and helping farmers to store their produce in scientific warehouse godowns while the amendment to competition laws is meant to carry out essential structural changes in the governing structure of the CCI, changes in substantive provisions to address the needs for new age markets and to expand the activities of the Commission across India by opening Regional Offices.

These are among five Bills that could come up in this session though it did not figure in any earlier lists.

The Cantonment Bill 2022 aimed at democratising and modernising cantonments as well as facilitating “ease of living” in such localities, the India Antarctica Bill, The Emigration Bill that is aimed at establishing a robust and transparent and comprehensive emigration management framework that facilities safe and orderly migration are among the Bills, which also found mention in a previous list but was not brought to Parliament for various reasons.

The list also includes The Pension Fund Regulatory and Development Authority (Amendment) Bill 2022, The National Dental Commission Bill 2022, The Metro Rail (Construction, Operation and Maintenance) Bill 2022 and The Energy Conservation (Amendment) Bill 2022.

Interestingly, the Electricity Amendment Bill, which the government had agreed to put on hold following a compromise with the farmers who were protesting against the now repealed farm laws, are also not in the list. Farmers, trade unions and a section of activists have opposed the Bill for a variety of reasons, including arguments that it would lead to complete privatisation of electricity distribution.

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