The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, will be tabled in the winter session of Parliament for consideration and passing. The bill will seek to create a framework for an official digital currency to be issued by the Reserve Bank of India (RBI).
In an interview with CNBC-TV18, Rameesh Kailasam, the president and CEO of IndiaTech, said the firm had submitted a detailed whitepaper on cryptocurrencies to the government and RBI. It had recommended banning private cryptocurrencies, which are not on the public ledger, he said.
"We had submitted a detailed set of recommendations 5-6 months ago. We had said that we need to call cryptos a form of digital assets and so on. We had also worked out benchmark mechanisms because there are 10,000 odd digital assets and currencies that are being traded. If you look at what is getting traded in the Indian exchanges, it is roughly around 150-200 of them. So there are threshold mechanisms, which are put in place depending on what's the use case, who is the team backing it, what is the token behaviour and market size and so on. Therefore, one of the things that we had also recommended is we should not be allowing private cryptocurrencies which are not on the public ledger," Kailasam said.
He said the company’s recommendations also dealt with taxation mechanisms and standardised norms, far more stringent KYC.
"Even the taxation mechanisms were dealt with in detail in the white paper, which we had submitted to both RBI and government of India. One of the things that we found was non-standard and which was required for the industry to come forward was KYC. So, we looked at FATF, SEBI, RBI and other recommendations on KYC and we standardised far more stringent KYC norms," he said.
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