cryptocurrency ban in india: NS Indian cryptocurrency market There has been a frenzy ever since the government’s plan to regulate these digital assets came to the fore during the upcoming winter session of Parliament. On Wednesday, a day after the government’s plan was revealed, cryptocurrency prices crashed and investors worried with just one question in their heads – what if India Bans cryptocurrency? bitcoin prices It fell to around Rs 34,000 during the day due to several factors such as year-end profit-booking, mounting selling pressure and the Indian government’s decision to introduce the ‘Cryptocurrency and Regulation of Official Digital Currency’ bill soon.
Nikhil Kamath, owner of online profit booking platform Zerodha, also expressed concern about the bill. “Is the Indian government banning crypto? What happens to everything that is already going on,” he asked on Twitter.
Kamath’s concerns should not be dismissed. According to a report by Moneycontrol.com, the crypto industry estimates suggest that there are 15 million to 20 million crypto investors in India. With this, the total amount of crypto holdings in the country has gone up to Rs 40,000 crore or $5.39 billion.
The government’s bill, the Official Digital Currency Bill, the Cryptocurrency and Regulation of 2021, “proposes to ban all private cryptocurrencies in India, however, it allows certain exceptions to promote cryptocurrencies and the technology underlying its use”. . It is one of the 26 bills that the central government is planning to introduce during the winter session.
The Reserve Bank of India is also planning to introduce its own digital currency. “To create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India,” it said. No other details were given about it in the Lok Sabha Bulletin. cryptocurrency and the Regulation of Official Digital Currency Bill, 2021.
Central government sources had earlier mentioned that it was looking at the regulation as “forward-looking and progressive”. After the meeting, Parliament’s Standing Committee on Finance met to take views from various stakeholders in the industry.
Addressing the Sydney Dialogue, a forum on emerging, critical and cyber technologies, PM Modi said, “Take cryptocurrencies or bitcoin, for example. It is important that all democratic countries work together on this and ensure that it does not fall into the wrong hands, which can spoil our youth.”
However, the government has repeatedly maintained that it will not completely ban cryptocurrencies in India, and only regulated private coins. A regulation mechanism will be put in place to ensure that crypto is not misused. The government is concerned about underground transactions taking place against cryptocurrency – particularly ‘hawala’ and its role in terror funding,” sources told CNN-News18 on Wednesday.
“A strict mechanism will be put in place so that law enforcement agencies can trace the origins of cryptocurrencies used for illegal or anti-national purposes,” he added.
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