Finance Minister Nirmala Sitharaman told the Rajya Sabha on July 27 that the Indian government does not collect data on the cryptocurrency market and has no idea how many active cryptocurrency exchange platforms or users there are in the country, in response to a question from Rajya Sabha MP and former Bihar deputy chief minister Sushil Kumar Modi. The finance minister went on to say that the ministry had no plans to expand.
In response to Modi’s question about active platforms in the country, Sitharaman responded, “This information is not gathered by the government.” The Indian government initially took a hard line against cryptocurrencies, but it has softened in recent months as the use of digital currencies has grown in the country. Investors who acquired cryptocurrencies outside of India may not have to pay an equalization charge, according to the finance minister. Modi questioned her on the matter. Former Bihar deputy chief minister inquired if the government plans to apply an equalization tax on investors who bought bitcoin from other countries.
While the government may lack information on cryptocurrency exchange platforms and active users, the crypto sector estimates that over 1.5 million people have purchased cryptocurrencies worth Rs 15,000 crore. Since the beginning of the year, major coins like as Bitcoin and Ethereum have increased in popularity in the country. As a result, it’s safe to conclude that the number of cryptocurrency investors is growing.
The Indian government had planned to outlaw cryptocurrencies earlier this year, and a Cryptocurrency Bill was anticipated to be tabled during the Budget session. It was postponed until a committee was formed and more consultations with industry stakeholders were held. The bill is also unlikely to be introduced during Parliament’s monsoon session. This is due to the government’s desire to take a stand.According to previous reports; the government is considering classifying cryptocurrencies as digital assets rather than outright banning them. The government may appear to be flexible when it comes to cryptocurrencies, but it still confronts huge problems from all sides. The Reserve Bank of India is one of them, and it is aiming to introduce its own digital rupee.