Crypto exchanges are seeking more clarity on definition of different types of crypto assets while the government looks to table the Cryptocurrency Bill in the Parliament this budget session, said people with direct knowledge of the matter.
“The department of economic affairs (DEA) and the ministry of electronics and information technology (MeitY) are aiming to table the draft Bill which will be presented in the budget session,” as per an official directly involved in the drafting of the Bill.
“The idea is to open it up for debate, but the sense is that cryptocurrency will be a regulated commodity in the near future.” A copy of the draft Bill has already been shared with the prime minister’s office (PMO), source further added.
“While the initial thinking was on the lines to go categorise the cryptocurrency into various parts and specify what’s legal and what’s not. Now, the Bill will only speak about a broad framework, without going into specifics,” a person aware of the development, said.
In this regard, several cryptocurrency exchanges have reached out to the government directly or through their association to seek clarity and lobby around the Bill, said people aware of the development. The exchanges want the government to at least differentiate between various crypto assets and technologies such as NFT, decentralised finance (DeFi) and Meme coins.
As per the existing Cryptocurrency Bill draft, the government is looking to just put the basic framework in place without articulating the asset class or who will regulate the cryptocurrency.
According to another person with direct knowledge of the matter, the original plan was to table the Bill in the winter session, but that will not be possible now. The government has reached out to some experts and regulators in this regard, said people aware of the development.