The Parliamentary Committee on Home Affairs has voiced concerns over the increasing use of digital currencies and darknet for drug trafficking.
Lesson from farm laws: Government going slow on crypto-currency, other major bills in winter session
The government had unveiled plans to seek parliamentary nod for a total of 29 bills, including three that had been previously introduced in the lower house.
Earlier, there were reports that under the new draft bill there is provision of punishment of any violation, a fine of Rs 20 crore or about $2.7 million, or imprisonment of 1.5 years will be slapped.
The Bill seeks to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI) for the ongoing winter session of Parliament.
Most well-known cryptocurrencies at the time of writing the article were trading 8-12 per cent lower than 24 hours ago with Bitcoin prices falling by Rs 5 lakh, or 12 per cent, in the past 24 hours.
Repeal of farm laws, cryptocurrency regulation: Modi government lists 26 bills for upcoming Parliament session
The Cryptocurrency and Regulation of Official Digital Currency Bill seeks to ban all but a few private cryptocurrencies to promote underlying technologies while allowing an official digital currency.
These also include a bill to repeal the three farm laws, a proposal for which is to be discussed by the Union Cabinet on Wednesday.