India will pass a bill banning all private Cryptocurrencies

India government will introduce a bill in the winter session of parliament starting November 29 to regulate cryptocurrency and ban all private cryptocurrencies. Shortly after the announcement of the proposed bill, massive panic led to a collapse in sales.

India Government has consistently warned citizens against investing in cryptocurrencies because cryptocurrencies are unregulated and carry cybersecurity risks such as loss or destruction of private key.

In addition, the International Monetary Fund (IMF) has stated that cryptocurrency assets need to be closely monitored as they could potentially disrupt various aspects of the global economy.

Introducing Bill Name Cryptocurrency and Regulation of Official Digital Currency Bill 2021, it is expected to come up in the loksabha this month later. If the bill passes, only private cryptocurrencies such as Monero, Dash and Zcash can be banned.

The definition of private cryptocurrency is not yet clear. Therefore, it is not clear whether this will allow people to trade in Bitcoin and Ether.

According to the Lok Sabha bulletin, some exceptions will be allowed to promote the basic technology of cryptocurrency and its applications. It went on to say that it was “trying to create a smooth framework for the creation of the official digital currency issued by the Reserve Bank of India”.

The RBI fears that this will create a financial imbalance as it will affect inflation and forex. A quilt ban is expected to stop crypto exchanges and other risks associated with it.Meanwhile, supporters of unregulated exchanges are campaigning for inclusion in a regulatory system and lobbying against its complete ban.

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Written by Shahina P


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