India will postpone the highly anticipated cryptocurrency law in parliament

Despite all eyes on India's long-awaited cryptocurrency law, it is unlikely to be presented during the current session of parliament, as the government has not yet finalized the specifics of the legislation.

Prime Minister Narendra Modi's government wants further talks on the matter before adopting laws to manage digital currencies, but there isn't enough time before the current session ends on December 23, according to people familiar with the matter, Bloomberg reported. . 

Additionally, the individuals asked not to be named as administrative discussions are private, but still revealed that the cabinet apparently did not approve the proposed legislation.

Crypto bill removed from the program

It is worth mentioning that the cryptocurrency bill has been removed from the business list scheduled for the last week of the Parliament session, according to the calendar posted on the Parliament website. During periods when parliament is not in session, the government can still pass laws by issuing an ordinance.

A description on the parliament's website, published last month, said the bill is intended to assist the central bank in creating an official digital currency. Although the legislation aimed to:

"Prohibiting all private cryptocurrencies in India, however, allows for some exceptions to promote the underlying cryptocurrency technology and its uses," the text reads.

India continues the difficult relationship with cryptocurrencies

As one of the fastest growing cryptocurrency markets in the world, India has had its fair share of ups and downs with digital currencies. In 2018, the central bank essentially outlawed cryptocurrency transactions, but the Supreme Court ended up overturning that decision.

Since then, there has been an increase in calls for tighter restrictions, with growing concerns that an unregulated environment could encourage more domestic household savings to be placed in volatile investments.

In fact, the Reserve Bank of India (RBI) informed its central council that it supports a total ban on cryptocurrencies at the central bank's board meeting on Friday, December 17. 

However, Indian millennials are increasingly opting for digital assets over traditional investment mediums such as stock trading. Data provided by CoinSwitch Kuber, an Indian cryptocurrency trading app, reveals that among its 11 million customers, between 25-55% of young users are outside large cities like New Delhi or Mumbai.

Finally, according to Finance Minister Nirmala Sitharaman, the latest bill has been amended to make it more up-to-date with current legislation. While, in contrast to the Reserve Bank's desire to ban cryptocurrencies, the government is considering allowing cryptocurrencies to be used as financial assets.