New Delhi: After the government stated on Tuesday that it would introduce a new financial regulation bill, India is on pace to prohibit all but a few private cryptocurrencies.
The ‘Cryptocurrency and Regulation of Official Digital Currency’ bill will set up a framework for the Reserve Bank of India to issue an official digital currency and outlaw all private cryptocurrencies like Bitcoin and Ethereum.
Prime Minister Narendra Modi made his first public comments on the matter earlier this month, saying that all democratic nations must work together to guarantee that cryptocurrency “does not wind up in the wrong hands, which can corrupt our youth.”
According to the parliament bulletin, the law, which will be presented to parliament in the next session, will allow exceptions to promote the underlying blockchain technology.
Thousands of peer-to-peer currencies that thrive on being outside the scope of regulatory inspection would be hampered by such a pre-verification strategy.
The government considered making the holding, issue, mining, trading, and transfers of crypto-assets illegal earlier this year.
The announcement that the government has introduced a Bill in Parliament to restrict all private cryptocurrencies in India, with a few exceptions to “advance the underlying technology of cryptocurrency and its purposes,” sent crypto markets crashing.
On November 23, all major cryptocurrencies dropped by 15% or more, with Bitcoin down over 17%, Ethereum down almost 15%, and Tether down nearly 18%.