The final call on the regulations for cryptocurrencies will be taken by Prime Minister Narendra Modi amid a difference of opinion between policymakers and industry players on the matter.
A meeting of top government dignitaries was held on the matter to consider various views including those of the Reserve Bank of India and industry stakeholders. The discussions are likely to continue on Friday as well before a final decision on the regulations is taken.
The options on the table include an outright ban on private cryptocurrencies, a partial ban, blanket regulations on all types of products based on digital coins, or regulations, according to a report in Economic Times.
The government had listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for discussion and clearing during the ongoing Winter Session of Parliament.
A draft note on the proposed legislation has already been prepared by the Finance Ministry, however, some in the government felt the need for further deliberations on some of the aspects of the crypto bill and overall treatment of the sector.
The draft bill might be changed based on discussions during the high-level meeting which will consider all aspects.
The Bill on cryptos was listed in the earlier Budget Session as well but could not be taken up as the government decided to make more changes to it. It includes provisions for a framework for the creation of an official digital currency to be issued by the Reserve Bank.
It was earlier reported that government plans to bring investments by Indian investors in digital coins on domestic and global platforms under tax ambit instead of an outright ban. It is being speculated that the prevailing income tax laws will be amended to bring crypto in its ambit during the upcoming Budget Session. The Centre wants to tax cryptocurrency income and investments within and outside India instead of a China-like blanket ban.