Winter Session of Parliament ends without the introduction of crypto bill

Winter Session of Parliament has ended but the Cryptocurrency Bill 2021 has not been introduced in the Parliament. This is the second time the bill failed to be introduced in the parliament. The last time this bill was about to be introduced in the budget session of Parliament in February but it could not happen. There can be many reasons for this. One of the main reasons that I understand is that the cryptocurrency bill may not be fully prepared. According to the Finance Minister of India, the Crypto Bill 2021 is yet to be approved by the Cabinet. Therefore, this time also the bill could not be introduced in the Parliament.

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At first there was speculation that all private cryptocurrencies would be banned as soon as the Crypto Bill 2021 was passed in the parliament. All the crypto investors were panicked and its effect was also visible on the market. It was natural. Later it was reported again that no cryptocurrency would be banned but people could not be able to store crypto asset on private wallets. You can trade crypto asset on Indian crypto exchanges but you cannot transfer tokens from there to any foreign exchange. Once the bill comes into force, all investors will have to bring their assets on the Indian exchanges within a stipulated time. Crypto mining will not be allowed at all. All these terms have caused a lot of frustration to crypto users. People started to feel that the government wanted to convert decentralized network into a centralized system. I think the buying and selling of cryptocurrency happens on any crypto exchange in the world. That is the nature of crypto assets.

Just imagine how new innovations will happen if the use of private wallets is banned in India. In the time of Web 3.0, it is difficult to do any work without a private wallet. Let’s take an example of opensea. Opensea is a NFT market place which requires private wallet to login. Some users make login with Trust Wallet and some of them use Metamask. I use metmask wallet. The advantage of this is that your assets are in your custody. When someone buys NFT on opensea, the amount is directly deducted from his wallet and on sale the amount is directly credited to the wallet. But you don’t have any control over your assets on a centralized exchange. They can suspend your deposit as well as withdrawal at any time. It is also heard that the government will not allow decentalized exchanges to operate in India. The government is looking at many aspects:

1. Tax
2. Money Laundering
3. Terrorist

Obviously the government can get a lot of taxes from the crypto industry that exchanges and other users are already paying. People can also convert their illegal money into cryptocurrency and send it outside the country. The government is also thinking that putting crypto assets in the hands of terrorists can prove to be dangerous for the whole world. These are all the things which are probably forcing the government to think. On the other hand Indian government hasn’t yet discussed about NFT (non fungible token). It is not known whether NFT has been introduced in Crypto Bill 2021. There are many aspects which need to be included in the Bill. That's why the bill was probably not introduced in the parliament. It is difficult to say whether or not Crypto Bill 2021 will be introduced in the Parliament in the next session as well. We will have to wait for that now.

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