India is preparing to ban private cryptocurrencies in the country. The Indian Parliament will consider a bill introduced by the government that will ban private cryptocurrencies in the upcoming budget session. Given that the ruling party controls both houses of parliament, the chances of the bill being passed seem good.

 

 

India can ban all private cryptocurrencies!

On Friday, according to a newsletter posted on the official website of Lok Sabha, the sub-house of the Indian Parliament, the “Cryptocurrency and Official Digital Currency Act of 2021” is to ban all cryptocurrencies in India and the Central Bank of India (RBI). It aims to provide a framework for creating an official digital currency that will be issued by


Although private cryptocurrencies will be banned with the draft law, it is stated that some exceptions will be allowed to encourage the technology that underlies the cryptocurrency and its use. The Parliament of India has a three-year session: the budget session, the Monsoon session, and the Winter session, which lasts from January to March.

If the bill is approved, India will be the only major Asian economy to ban cryptocurrencies

If the bill is approved, India will be the only major Asian economy to ban private cryptocurrencies rather than regulate them like corporate stocks. The RBI, through a circular issued on April 6, 2018, prohibited regulated entities from transacting in cryptocurrencies and from providing services to any person or organization that deals with or resolves them.

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We have previously reported, the central bank’s banking ban was revoked by the Supreme Court in March 2020, delighting the stock exchanges that provide services to India-based customers. Sumit Gupta, CEO of Mumbai-based CoinDCX exchange, stated that he is not pessimistic about the proposed legislation. Sumit Gupta adds to his comments on the subject:

BECAUSE THE GOVERNMENT IS INTENDING TO PRESENT THE DRAWING DURING THIS SESSION OF THE PARLIAMENT, WE ARE SURE THAT THE GOVERNMENT WILL LISTEN TO ALL STAKEHOLDERS BEFORE TAKING ANY DECISION. WE ARE TALKING WITH OTHER STAKEHOLDERS, AND WE WILL DEFINITELY START A DEEPER DIALOGUE WITH THE GOVERNMENT AND SHOW HOW WE CAN BUILD A HEALTHY ECOSYSTEM.

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