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Balanced Approach to Cryptocurrency Regulation Will Be Taken: Principal Economic Adviser

The government will adopt a balanced approach to regulating cryptocurrencies since they have repercussions for the country’s financial stability, according to main economic adviser Sanjeev Sanyal.

Currently, there are no specific rules or prohibitions on the usage of cryptocurrencies in the nation.

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The subject of cryptocurrencies was not addressed in the economic survey 2021-22, according to Mr Sanyal, during a media engagement on the study, which was submitted in Parliament earlier in the day by finance minister Nirmala Sitharaman.

“As you may be aware, this is a source of contention within the administration, the Ministry of Finance, and even Parliament. As a result, this is something that is now being debated “he explained

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The Reserve Bank of India (RBI) has also raised concerns about the potential influence of virtual currencies on financial stability.

In the last session of Parliament, the government stated its desire to introduce a law on cryptocurrencies with the goal of “creating a facilitative framework for the formation of the official digital currency to be issued by the Reserve Bank of India.”

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It could not, however, be tabled since the draft law had not been approved by the Cabinet.

In November, the prime minister met with senior officials to discuss cryptocurrencies, and there were hints that substantial regulatory action may be taken.

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The Parliamentary Standing Committee on Finance, led by BJP member Jayant Sinha, also met with members of crypto exchanges and the Blockchain and Crypto Assets Council (BACC), among others, and concluded that cryptocurrencies should not be prohibited in the nation, but rather regulated.

The RBI has consistently stated its strong opposition to cryptocurrencies, claiming that they represent severe challenges to the country’s macroeconomic and financial stability. It has also questioned the number of investors trading them and their alleged market value.

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