The Finance Minister, Nirmala Sitharaman, stated that the government has not decided on prohibiting bitcoin exchanges from advertising.
She stated in the Rajya Sabha on Tuesday that they have yet to decide on cryptocurrency ads, calling it a risky area. The announcement comes just a day after she was reported in the Lok Sabha as saying there was no plan to recognise Bitcoin as a currency in India.
“This is a high-risk industry with no comprehensive regulatory structure in place.” It was not decided whether or not its advertising should be prohibited. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are taking initiatives to enhance awareness. The administration will introduce a law soon.” Sitharaman stated at the Rajya Sabha’s Question Hour.
The Finance Minister further stated that the Centre is considering regulating Non-Fungible Tokens (NFTs). Any digital asset, such as a jpg or GIF file, or even a digital music file, can be used as an NFT. The global NFT market has exploded as a result of the bitcoin craze.
She also added that the possibility of cryptocurrency being used for illicit reasons is always being monitored. When asked about MP Sushil Kumar’s efforts to restrict commercials, Sitharaman responded that “investors have been cautioned.”
“We don’t have ready information on the amount of tax collected on cryptocurrencies,” Sitharaman said on cryptocurrency trade taxes.
This news comes as the government prepares to present the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 during Parliament’s current Winter Session. The bill aims to outlaw all but a few private cryptocurrencies to encourage the underlying technology while also allowing the Reserve Bank of India to issue an official digital currency (RBI).
In an earlier reply to the Lok Sabha, Finance Minister Pranab Mukherjee stated that the government does not gather information on Bitcoin transactions.