No decision yet on banning cryptocurrencies advertisements, Nirmala Sitharaman tells Rajya Sabha

Union Finance Minister Nirmala Sitharaman on Tuesday said the government has taken no decision yet on banning advertisements of digital currencies. Speaking on the floor of the Rajya Sabha, Sitharaman said that there were extensive discussions on the regulatory capacity of cryptocurrencies and that the government will bring a bill soon.

“This is a risky area and not in a complete regulatory framework. No decision was taken on banning its advertisements. Steps are taken to create awareness through RBI and SEBI,” the Minister said on cryptocurrency during Question Hour in Rajya Sabha

She added that there were other dimensions and the old bill had to be reworked. “Government will soon introduce a Bill,” Sithraman said.

Sitharaman had on Monday said that the government has no proposal to recognise Bitcoin as a currency in the country. In a written reply in the Lok Sabha, she also said that the government does not collect data on Bitcoin transactions. Bitcoin is a form of digital currency which allows people to buy goods and services among others.

The government is planning to table the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, in the current session of the Parliament through which it will ban all private cryptocurrencies. At present, there is no regulation or ban in the country on cryptocurrency.

The Reserve Bank of India has maintained its strong views against cryptocurrencies, saying they pose serious threats to macroeconomic and financial stability. The central bank also doubted the reported number of investors trading on them and their claimed market valuations.

READ MORE: Bitcoin will not be accepted as currency, says Sitharaman

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