India is set to soon introduce its revised crypto bill in the ongoing Winter Session of the Parliament. Meanwhile, there is a lot of chatter as to what that bill will incorporate. As per a local source-based report, the bill might restrict crypto exchange-to-exchange transfers.
Therefore, a blanket ban on trade among bourses is what some sources have revealed. Additionally, wallets that mask the owner’s identity and keep trades anonymous can face restrictions, as it allows the movement of cryptos beyond the ones listed by approved exchanges.
Having said that, an Economic Times report mentioned the possibility of a government-introduced crypto wallet, which will also help keep private wallet providers in check. It could be similar to an electronic demat account that investors use, to store stocks which essentially translates to a “closed-loop system.” This, some might argue, isn’t true to the ethos of decentralized open trade.
Take the example of El Salvador, which has introduced the Chivo Wallet for the citizens after its policy decision to consider Bitcoin as legal tender.
In the Indian context, citizens will be dealing with “crypto-assets” with the government likely to keep an eye on the retail transactions. This is because the Indian government is reportedly considering cryptocurrency as assets, with investors being required to disclose their holdings.
Local media suggest that government might decide which crypto exchanges will be allowed within the country. This means that their statements might see a quarterly audit by the regulators.
While all this happens, there is a deduction that Indian crypto holders will get some time to declare their assets as well. The development follows previous reports that the Securities and Exchange Board of India (SEBI) will oversee the country’s crypto market.
In light of that, it is also worth mentioning that the Reserve Bank of India is planning to explore both wholesale, and retail CBDCs. Quoting Deputy Governor of the Reserve Bank, T. Rabi Sankar, a recent report noted that a lot of work has been done on wholesale-based CBDC while retail is somewhat complicated and will take more time. He also added,
“We will release a pilot, whichever is ready first.”