The Central government has emphasised that not all windows on cryptocurrencies will be shut down. A mechanism would be put in place to regulate cryptocurrency. "Active solicitation would not be permitted... Details of the bill are being finalised," said a government source. Cryptocurrencies in India are likely to be allowed to be held as an asset like shares, gold or bonds.
However, the industry associations and stakeholders were not clear as to who should be the regulator.The Securities and Exchange Board of India (Sebi) could be designated as the regulator, although a final call is yet to be taken. "Discussions on regulation are going on," sources said.
The Centre is aid to be working on the taxation aspects and the upcoming legislation is expected to address this, the source added. On November 13, a high-level meeting chaired by Prime Minister Narendra Modi with all stakeholders, and it was learnt that the government is mulling to introduce a bill in the winter session of Parliament to regulate the dealing of cryptocurrencies in India. There was also consensus that the steps taken in this field by the government will be progressive and forward-looking.
The Standing Committee on Finance on Monday heard views of industry experts and associations on issues concerning 'crytofinance' and there was an understanding that cryptocurrency cannot be stopped but it must be regulated.
The high-level meeting was organized after RBI Governor Shaktikanta Das sounded an alarm on cryptocurrencies, cautioning investors on the potential pitfalls of the digital currency. On November 10, Das had said that cryptocurrencies are a very serious concern from a macro economic and financial stability point of view.