No ban on advertisements but Cryptocurrency is a risky area: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Tuesday said that the Centre has taken no decision regarding placing a ban on cryptocurrency advertisements. Replying to a question in the Rajya Sabha, FM Sitharaman said that the digital token market is a 'risky area'. She further went on to state that there are several cases of cryptocurrency-related fraud under investigation.

Only a day after reiterating that the Centre will not be accepting Bitcoin as an official currency, Nirmala Sitharaman on Tuesday said that the Centre is yet to complete a regulatory framework, which will soon be released. FM Sitharaman was replaying during Question Hour in Rajya Sabha when she made the comment on advertisements relating to the digital currency.

"This is a risky area & not in a complete regulatory framework. No decision was taken on banning its advertisements. Steps are taken to create awareness through RBI & SEBI," Sitharaman said.

The FM also said that the guidelines of the Advertising Standards Council of India are being studied and their regulations are also being looked into in the context of the advertisements being run by cryptocurrency exchanges. She said that the regulations are being looked at "so that we can take, if necessary, some kind of position or a decision to see how we can handle it".

Centre denies Cryptocurrency ban, says it will introduce regulatory bill soon

Furthermore, the FM went on add that the Centre will soon push The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which looks to bring regulations on cryptocurrency transactions in India. The Bill on cryptocurrency has been included in the Lok Sabha Bulletin-Part II, as a part of the government’s plan to bring it up during the ongoing winter session.

The Bill, which will be pushed by the FM, seeks to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI).

"This Bill, once the Cabinet clears, will come into the house," Sitharaman said while replying to a series of questions in the Rajya Sabha. The government had earlier listed a similar Bill for the monsoon Parliament session, however, it was not taken up. Meanwhile, the Finance Ministry in a written reply in Rajya Sabha also informed the House that a total of eight cases regarding cryptocurrency-related fraud are under investigation by the Directorate of Enforcement.

Earlier, in a written reply to the Lok Sabha, Union Finance Minister Nirmala Sitharaman made it clear that there is no proposal to recognise Bitcoin as an official currency. Raising a specific question in this regard, independent MP Sumalatha Ambareesh and Congress MP DK Suresh mentioned that Bitcoin transactions are quietly booming in India in the last few years. However, Sitharaman clarified that the Union government does not collect data on Bitcoin transactions. 

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