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dpa
New Delhi
The Indian government is set to introduce a bill to ban all private cryptocurrencies, with a few exceptions, as well as create a framework to regulate digital currency issued by the country’s central bank.
The Cryptocurrency and Regulation of Official Digital Currency Bill has been listed for introduction in the parliamentary session beginning November 29, state-run broadcasting service Prasar Bharati said citing the official agenda released Tuesday evening.
The bill seeks to “create a facilitative framework for the creation of official digital currency to be issued by the Reserve Bank of India. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency.”
In response to the development, all major digital currencies saw a fall of around 15 per cent in overnight trading on Indian crypto exchanges, with Bitcoin down by 18.53 per cent, Ethereum down by 15.58 per cent and Tether down by 18.29 per cent, the NDTV network reported.
Last week, Prime Minister Narendra Modi urged democracies to collaborate on cryptocurrency, saying this was important to ensure that currencies like Bitcoin do not fall into the “wrong hands.”
The Indian government has concerns that cryptocurrencies could be used to finance terrorism and money laundering. Officials are also sceptical of the virtual currencies, pointing out their volatility and misleading promises to investors.
According to blockchain data platform Chainalysis, India is one of the fastest growing cryptocurrency markets in the world. The market grew by more than 600 percent last year.
In total, there are 6.6 billion dollars in crypto investments in the country with its more than 1.3 billion inhabitants. Young people, in particular, like to invest in cryptocurrencies in India.
If passed, the bill will make India the second major emerging economy to bar cryptocurrency transactions after China made a similar move in September. El Salvador is the only country to recognise cryptocurrency as legal tender.
A lobby led by unregulated exchanges in India has been campaigning for inclusion of the cryptocurrencies under a regulated system.
The RBI however has been backing a ban on cryptocurrency, arguing that it can be used for illegal purposes apart from curtailing the central bank’s ability to manage inflation, foreign exchange and the overall economy.
New Delhi
The Indian government is set to introduce a bill to ban all private cryptocurrencies, with a few exceptions, as well as create a framework to regulate digital currency issued by the country’s central bank.
The Cryptocurrency and Regulation of Official Digital Currency Bill has been listed for introduction in the parliamentary session beginning November 29, state-run broadcasting service Prasar Bharati said citing the official agenda released Tuesday evening.
The bill seeks to “create a facilitative framework for the creation of official digital currency to be issued by the Reserve Bank of India. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency.”
In response to the development, all major digital currencies saw a fall of around 15 per cent in overnight trading on Indian crypto exchanges, with Bitcoin down by 18.53 per cent, Ethereum down by 15.58 per cent and Tether down by 18.29 per cent, the NDTV network reported.
Last week, Prime Minister Narendra Modi urged democracies to collaborate on cryptocurrency, saying this was important to ensure that currencies like Bitcoin do not fall into the “wrong hands.”
The Indian government has concerns that cryptocurrencies could be used to finance terrorism and money laundering. Officials are also sceptical of the virtual currencies, pointing out their volatility and misleading promises to investors.
According to blockchain data platform Chainalysis, India is one of the fastest growing cryptocurrency markets in the world. The market grew by more than 600 percent last year.
In total, there are 6.6 billion dollars in crypto investments in the country with its more than 1.3 billion inhabitants. Young people, in particular, like to invest in cryptocurrencies in India.
If passed, the bill will make India the second major emerging economy to bar cryptocurrency transactions after China made a similar move in September. El Salvador is the only country to recognise cryptocurrency as legal tender.
A lobby led by unregulated exchanges in India has been campaigning for inclusion of the cryptocurrencies under a regulated system.
The RBI however has been backing a ban on cryptocurrency, arguing that it can be used for illegal purposes apart from curtailing the central bank’s ability to manage inflation, foreign exchange and the overall economy.
