The crypto industry has been the hottest topic in the Parliament, Rajya Sabha on Tuesday after Nirmala Sitharaman, the Financial Minister, clarified the false speculations around crypto banning in India.
Sitharaman, on the second day of the Winter session, answered the queries of various ministers related to the upcoming new Bill. She further urged the MPs to wait until the Bill is presented in Parliament.
Some MPs raised their concerns on whether private crypto players should be banned, to which she replied that the finance ministry is working on bringing a structured regulatory framework. Swapan Dasgupta, the MP of Bharatiya Janata Party (BJP), wondered if controlling the cryptocurrency market would be a better option than an “outright ban.”
The government of India is spreading awareness regarding crypto risks
Dasgupta asked, “Will an outright ban in India be desirable? Or will it be far better to regulate it? We don’t know how cryptocurrency is moving in the future; Keeping that in mind, will it be better to ban the influence the of crypto within the system?”
To this, Sitharaman replied that the question on regulations and bans would be inappropriate in India without passing and discussing any Bill in Parliament. She stated:
“Any answer I give now will preempt the discussion when the government comes with its Bill.”
MP Narendra Jadhav, BJP MP Sushil Modi, and BJD MP Sujeet Kumar raised concerns about “misleading advertisements” in the media, which they believe are enticing young people to “invest crores” in the private crypto.
Kumar and Jadhav asked if the government was taking steps to spread awareness about the risks involved in cryptocurrencies, given that these are used for “terror financing” and “money laundering.”
Sitharaman responded to the concern saying that several efforts have been made to build awareness about the risks. She seemed positive towards regulation and adoption of cryptocurrencies.
She said that statements had been issued regarding crypto and the underlying risks through the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Government of India (GoI).