Crypto Bill In India To Be List In Winters Banning “Private Cryptocurrencies”

The crypto bill aims to build a framework that will make it easier for the Reserve Bank of India to develop an official digital currency.


THE SUDDEN NEWS AFFECTING CRYPTO MARKET

Hours after the government stated that it will submit the cryptocurrency bill in Parliament’s winter session.

It intends to prohibit all private cryptocurrencies in the country, with a few exceptions. All crypto prices plummeted by 15% or more after the news.

The Indian government announced Tuesday evening that the proposed law will allow “some exclusions” in order to encourage cryptocurrency’s core technology and applications.

“PRIVATE CRYPTOCURRENCY” IS STILL UNCLEAR

The government says it will impose ban on “Private Cryptocurrencies”. It’s still unclear what a “Private Cryptocurrency” is.

In response, crypto supporters raised their concerns over the recent news.

Shiv Sena MP Priyanka says “banning private cryptocurrencies is basically ending the entire idea of a new fintech that could emerge as a huge employment creator, killing the entire space.”

According to the legislative agenda, the law, titled Cryptocurrency and Regulation of Official Digital Currency Bill 2021. It will also create a “facilitative framework” for the formation of the country’s official digital currency.

It’s worth noting that the bill’s description is identical to that of the previous parliamentary session earlier this year, according to New Delhi.

The parliament’s winter session begins on November 29.

India’s Biggest crypto exchange WazirX CEO Nischal Shetty posted a series of Tweets in regards of recent Parliament session. He cleared that “It’s still unknown what government mean by Private Cryptocurrencies.”

He also stated to stay calm and “don’t panic.”

GOVERNMENT’S CONCERN OVER UNREGULATED DIGITAL ASSETS

For several quarters, Indian legislators have been debating the risks of cryptocurrency trading. They started experimenting with a central government-backed digital currency.

In recent quarters, an increasing number of Indians, many of whom have never participated in the stock market or any other asset class, have begun to trade cryptocurrencies, raising fears that they may lose their money.

Former Governor of RBI Raghuram Rajan also showed his concern over the exchange of cryptocurrency and stated that, “If things have value only because they will be pricier down the line, that’s a bubble.” “…a lot of cryptos have value only because there is a greater fool out there willing to buy.”

In recent months, India’s Prime Minister Narendra Modi, as well as various other lawmakers and business leaders, have convened several meetings to examine the cryptocurrency market and recent developments.

According to a source familiar with the situation, at least one top Indian minister recently spoke with a renowned venture capitalist and stated that, following China’s move to restrict cryptocurrency trade and mining, India is likely to develop a law that will foster innovation.

The governor of India’s central bank, Shaktikanta Das, stated last week that the government has to have far more in-depth discussions about cryptocurrencies.

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Image credits: Reuters

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