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The Indian government has given some updates on its cryptocurrency bill and the investigation into crypto exchanges in the Lok Sabha, the lower house of the Indian Parliament. “Crypto assets, by definition, are borderless and require international cooperation to prevent regulatory arbitrage,” said the Minister of State for the Ministry of Finance.

Government of India Answers Questions on Crypto Bill and Regulation

The Indian government on Monday responded to two questions on cryptocurrency and its regulation from various members of the Lok Sabha, India’s lower house of parliament.

Member of Parliament Bhartruhari Mahtab asked the finance minister to state “the current status of the cryptocurrency bill to be introduced during the 2021 winter session of parliament” and “the timeframe within which the cryptocurrency bill will be introduced and subsequently open for public investment.”

Minister of State for Finance Pankaj Chaudhary responded without giving a specific date.

Crypto assets are by definition borderless and require international cooperation to prevent regulatory arbitrage. Therefore, any legislation on the topic can only be effective if there is significant international cooperation on risk-benefit assessment and the evolution of a common taxonomy and standards.

Mahtab also asked the finance minister to specify which ministry and/or department will regulate cryptocurrencies and crypto tokens, and which will regulate other types of “virtual digital assets” such as non-fungible tokens (NFTs), decentralized applications (dApps). real estate tokens and other blockchain-based assets.

Chaudhary simply replied.

Currently, the policy related to crypto assets and the related ecosystem is with the Ministry of Finance.

Members of Parliament are also asking for details of the crypto exchanges under investigation

Another set of questions from several other members of parliament asked for “details of crypto exchanges that are being investigated by the government for money laundering and tax evasion.”

Chaudhary explained that the Enforcement Directorate (ED) is “investigating several cases related to crypto scams where several crypto exchanges have also been found involved in money laundering.” The minister clarified that as of December 14.

proceeds from crime in the amount of drams. In the said cases, 907.48 million drams were confiscated/confiscated, three persons were arrested and four prosecutors filed complaints in the Special Court – PMLA.

Further, under the Foreign Exchange Management Act, 1999 (FEMA), assets of Rs. 289.68 crores ($35,046,152) were confiscated. Additionally, one Show Cause Notice has also been issued to Zanmai Labs, which operates the Wazirx crypto exchange, and its director under FEMA for dealing in crypto assets worth Rs. 2,790.74 cr.

The minister added that 12 cryptocurrency exchanges have been investigated for goods and services tax (GST) evasion. So far, Rs 110.97 crore including interest and penalties have been recovered. Moreover, eight cases are still under investigation, four cases were terminated. He provided the table below to the Lok Sabha:

Government of India Updates Parliament on Cryptocurrency Bill and Investigating Crypto Exchanges
Table provided by Ministry of Finance while answering crypto questions from Members of Parliament in Lok Sabha.

Chodari also clarified.

Currently, crypto assets are not regulated in India. The government does not register crypto exchanges.

Indian Finance Minister Nirmala Sitharaman said in October that the government plans to discuss crypto regulation with G20 countries to create a “technological regulatory framework” for crypto. India’s Economic Affairs Secretary Ajay Seth said last week that the G20 countries aim to build a political consensus on crypto assets for better global regulation. Last month, US Treasury Secretary Janet Yellen and Sitharaman discussed crypto regulation at the ninth India-US Economic and Financial Partnership meeting.

What do you think of the Indian government’s approach to cryptocurrency? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests are bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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