Options include a complete ban on private cryptocurrencies, a partial ban, allowing all categories of crypto products with regulation, or just a few with regulation, one of the people said.
Deliberations are likely to continue on Friday before a decision is made on the framework, the second person said.
The Cryptocurrency and the Official Digital Currency Regulation Bill, 2021 is included for consideration and approval in the current winter session of Parliament.
The draft law could undergo some changes
The Finance Ministry has finalized a draft note on the proposed bill, but sections within the government felt that more detailed discussions were needed on the principles underlying the bill and on the general details of the treatment of virtual currencies by from India, the person said. Discussions are likely to focus on various options and the pros and cons of adopting them. "PM will now take one last call on these," the person said.
The bill could undergo some changes after these deliberations at the highest level.
The bill was also previously included in the last budget session, but could not be presented as the government decided to rework it.
The proposed bill also seeks to create an enabling framework for the creation of an official digital currency to be issued by the Reserve Bank. Its aim is to ban private cryptocurrencies in India while allowing certain exceptions to promote the underlying technology.
Finance Minister Nirmala Sitharaman told the Rajya Sabha last week that the government will bring the bill to parliament after the cabinet passes it.
