Indian Finance Minister Nirmala Sitharaman answered some questions about the cryptocurrency of Rajya Sabha, the upper house of the Indian Parliament. Questions include measures the government plans to impose on the crypto industry.

Finance Minister Nirmala Sitharaman answers encryption questions in Parliament

The Minister of Finance of India answered four questions about “cryptocurrency transactions” in Rajya Sabha on Tuesday, including the measures outlined in the Crypto Act.

Minister Sushil Kumar Modi (Sushil Kumar Modi) asked whether the Minister of Finance “imposed a ban on bitcoin transactions in 2018”, which was later lifted by the Supreme Court, whether other cryptocurrencies were still banned, and “despite the ban, However, illegal trading of cryptocurrency is still prohibited.” “

In response to these questions, Minister of Finance Nirmala Sitharaman replied: “In view of the risks associated with virtual currencies (VC) including Bitcoin, the Reserve Bank of India (RBI) issued a circular on April 6, 2018 to all regulated entities. Provide advice. It does not engage in venture capital transactions or provide services to facilitate any individual or entity to process or resolve venture capital.” She confirmed:

However, according to the judgment dated March 4, 2020, the distinguished Supreme Court… has revoked the above circular letter dated April 6, 2018.

India's Finance Minister answers questions about cryptocurrency plans and bans

The last question is: “At that time, the government proposes to issue strict guidelines in this area, while considering the risks involved?” The Minister of Finance continued to provide a long answer, similar to last week’s Minister of Finance Anurag Thakur (Anurag Thakur) provides the first part of the answer.

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Sitharaman quoted the 2018-2019 budget speech as saying: “The government does not consider cryptocurrencies to be legal tender or tokens, and will take all measures to eliminate the use of these crypto assets for illegal activities or as part of the payment system. The government will actively explore its use. Blockchain technology to realize the digital economy.'”

She went on to talk about the “Recommendations of the High Inter-Ministerial Committee (IMC) chaired by the Secretary (Economic Affairs) to study issues related to venture capital and propose specific actions to be taken on this issue.” The committee is composed of Su Subhash Chandra Garg (Subhash Chandra Garg) led, the latter has resigned. The Minister of Finance said that the committee “recommended in its report that India should ban all private cryptocurrencies except any cryptocurrency issued by the state,”

The government will make a decision on the IMC’s recommendations and will introduce legislative recommendations (if any) to Parliament after due process.

Since the Indian government listed the bill to be introduced in the lower house of the Indian Parliament, Lok Sabha, the Indian government has answered other questions about cryptocurrency and any other measures it plans to implement on the industry. The bill aims to ban cryptocurrencies and at the same time provide a regulatory framework for the digital rupee issued by the Central Bank of India.

However, the bill has not yet been made public, causing confusion about the status of the bill and what prohibitions it will bring. Some people suspect that it may be very similar to the document submitted by the Garg Committee.

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Last week, Anurag Thakur, Minister of Finance of India, answered questions about the government’s position on cryptocurrency and the digital rupee in Rajya Sabha. Then, on Tuesday, he answered more encryption questions and confirmed that the encryption bill is being finalized and will be sent to the cabinet soon.

What do you think of the Minister of Finance’s view on cryptocurrency? Let us know in the comments section below.

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