Vinay Express News, New Delhi. Amid rising concern over the unregulated Crypto market, the government is likely to introduce a bill in the upcoming session of Parliament restraining the use of all private cryptocurrencies in India with certain exceptions to promote the underlying technologies. The move came in amidst growing demand to regulate cryptocurrency.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, one of the 26 bills listed on the government’s legislative agenda, is scheduled to be introduced in the upcoming Winter Session of Parliament starting November 29, 2021. The bill also facilitates the creation of the official digital currency to be issued by the Reserve Bank of India.
The Bill seeks to “create a facilitate framework for the creation of the official digital currency to be issued by the RBI. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
India has been witnessing a significant increase in crypto-investment. According to crypto research and intelligence business CREBACO, Indians’ investment in cryptocurrencies has increased to over Rs.75,000 crore or $10 billion from $ 923 million in April.
However, the central bank has continuously emphasized the supposed risks involved with the private currencies.
The Central Government and the Reserve Bank of India had repeatedly raised concern over Cryptocurrencies, citing they can pose a threat to India’s economic and financial stability. Recently while delivering the keynote address at the inaugural Sydney Dialogue, Prime Minister Narendra Modi called on all democratic nations to work collectively to ensure cryptocurrencies like bitcoin and other volatile assets do not end up in the wrong hands. He also warned that it can spoil the youth.
Earlier in 2018, the RBI had issued a circular stating ‘entities regulated by the Reserve Bank shall not deal in Virtual Currencies or provide services for facilitating any person or entity in dealing with or settling Virtual Currencies’. However, the circular was later quashed by the Supreme Court in March this year.
Crypto Prices Crash following govt. move:
Following the Government’s move, that seeks to ban all private crypto currencies in the country, crypto prices crashed by 15% and more.
As on November 23, 2021, major crypto currencies including Bitcoin, Ethereum and Tether was down by 17%, 15% and 18%.
Author: विनय थानवी
