In order to pass a bill recently proposed to regulate digital currencies in the country. The Indian government may take a legislative shortcut.
The Indian government may take the ‘ordinance route’ to prohibit the use of private cryptocurrencies in the country, as well as create a regulatory framework for a digital rupee issued by the Reserve Bank of India. According to a report from news outlet CNBC-TV18. Passing the measures using this technique under the proposed crypto bill would require the President of India, Ram Nath Kovind, to issue an order when Parliament is not in session.
The news outlet stated that the appropriate parties had already started preparing a draught of the ordinance. With the aim of introducing the “within a month” crypto law after issued. Unlike bills passed through Parliament’s acts, ordinances typically allow the Indian government to take legislative action immediately.
“[The government wants] this bill to be cleared as soon as possible,” said CNBC-TV18 reporter Timsy Jaipuria. “We’ll have to wait and see how soon government works, and clear this ordinance.”
Govt. is currently considering the bill
As part of its budget session, which runs until April 8. But has a recess between Feb 16 and March 7, the proposed legislation. The Cryptocurrency and Regulation of Official Digital Currency Bill, considering the upper house of India’s Parliament. During parliamentary recesses, President Kovind is empowered to pass ordinances. Meaning that India could potentially enact some type of crypto ban as early as March.
While the bill states that it will “prohibit all private cryptocurrencies” in India. It also states that it will allow “certain exceptions to promote the underlying technology of cryptocurrency and its uses.” Cashaa CEO Kumar Gaurav said he believed. That the legislation was more of an attempt to prevent illegal activities in the industry than to ban cryptography outright.
Since overturning a blanket ban from the Reserve Bank of India in March. The Indian government has largely not taken a firm position on digital currency regulation. However, reports citing sources within the government have suggested since August. That Parliament is considering a new law banning crypto trading in India. The central bank also stated that it would “exploring the possibility” of a digital rupee.