In a long-anticipated law, India is prepared to move through with its aim to prohibit most cryptocurrencies in the nation.
In recent months, there has been growing speculation that the government will change its stance on digital currencies.
The prohibition would apply to all private cryptocurrencies, with few exclusions to allow for the development of the technology and its applications.
After the decision on the bill's future was made, cryptocurrency values fell on Indian exchanges.
The restriction is part of the planned Cryptocurrency and Regulation of Official Digital Currency Bill, which will be submitted in the legislature's winter session, according to a government bulletin.
The planned legislation aims "to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI)".
The proposal to ban all private cryptocurrencies looked to be very identical to a previous draught of the law published in January.
The government has been said to be softening its attitude on cryptocurrencies in recent months, presumably attempting to regulate them as investments rather than a form of payment.
While the bill's description hasn't changed, the actual alterations have yet to be determined because the current document isn't yet accessible to the public.
Following the bill's release, the value of numerous digital currencies is said to have fallen.
On the Indian market WazirX, Bitcoin sank more than 13%, while Shiba Inu and Dogecoin both fell more than 15 per cent.
The worldwide impact, according to Glen Goodman, author of The Crypto Trader, is "quite limited".
"Even when China decided to ban cryptocurrency - and that was a really big deal - it didn't completely massacre the crypto markets," he said.
Among various little Chinese flags, a real-world coin with the Bitcoin emblem is scattered on a table.
China's central bank stated in September that all cryptocurrency transactions will become illegal.
Cryptocurrency trading is expected to continue under the proposed bill, according to a video report by local news outlet India Today, as long as customers buy from exchanges that fulfill specific conditions.
According to the source, the measure may focus on limiting who is permitted to develop cryptocurrencies in order to safeguard investors.
The RBI, the country's central bank, is viewed as holding conservative views on cryptocurrencies, according to the CoinDesk website.
The Indian Supreme Court reversed a two-year ban on digital currency trading imposed by the Reserve Bank of India in March 2020.
Last week, RBI governor Shaktikanta Das stated that the central bank had "severe concerns from the standpoint of macro-economic and financial stability," and that blockchain technology can exist without cryptocurrencies.
Goodman, on the other hand, cited China's recent prohibition and El Salvador's intention to establish a Bitcoin city at the base of a volcano, with the cryptocurrency serving as the project's funding.
"Governments take very different approaches to how they see it," he said. "As a threat, an opportunity, or somewhere in-between."
According to Goodman, the Chinese government aims to eliminate all digital currencies other than the one it is developing.
"They want to dominate cryptocurrencies, and it seems to me like the Indian government has got the same idea.
"They think, 'well if China is doing it, then so can we'."
(Source:www.reuters.com)
In recent months, there has been growing speculation that the government will change its stance on digital currencies.
The prohibition would apply to all private cryptocurrencies, with few exclusions to allow for the development of the technology and its applications.
After the decision on the bill's future was made, cryptocurrency values fell on Indian exchanges.
The restriction is part of the planned Cryptocurrency and Regulation of Official Digital Currency Bill, which will be submitted in the legislature's winter session, according to a government bulletin.
The planned legislation aims "to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI)".
The proposal to ban all private cryptocurrencies looked to be very identical to a previous draught of the law published in January.
The government has been said to be softening its attitude on cryptocurrencies in recent months, presumably attempting to regulate them as investments rather than a form of payment.
While the bill's description hasn't changed, the actual alterations have yet to be determined because the current document isn't yet accessible to the public.
Following the bill's release, the value of numerous digital currencies is said to have fallen.
On the Indian market WazirX, Bitcoin sank more than 13%, while Shiba Inu and Dogecoin both fell more than 15 per cent.
The worldwide impact, according to Glen Goodman, author of The Crypto Trader, is "quite limited".
"Even when China decided to ban cryptocurrency - and that was a really big deal - it didn't completely massacre the crypto markets," he said.
Among various little Chinese flags, a real-world coin with the Bitcoin emblem is scattered on a table.
China's central bank stated in September that all cryptocurrency transactions will become illegal.
Cryptocurrency trading is expected to continue under the proposed bill, according to a video report by local news outlet India Today, as long as customers buy from exchanges that fulfill specific conditions.
According to the source, the measure may focus on limiting who is permitted to develop cryptocurrencies in order to safeguard investors.
The RBI, the country's central bank, is viewed as holding conservative views on cryptocurrencies, according to the CoinDesk website.
The Indian Supreme Court reversed a two-year ban on digital currency trading imposed by the Reserve Bank of India in March 2020.
Last week, RBI governor Shaktikanta Das stated that the central bank had "severe concerns from the standpoint of macro-economic and financial stability," and that blockchain technology can exist without cryptocurrencies.
Goodman, on the other hand, cited China's recent prohibition and El Salvador's intention to establish a Bitcoin city at the base of a volcano, with the cryptocurrency serving as the project's funding.
"Governments take very different approaches to how they see it," he said. "As a threat, an opportunity, or somewhere in-between."
According to Goodman, the Chinese government aims to eliminate all digital currencies other than the one it is developing.
"They want to dominate cryptocurrencies, and it seems to me like the Indian government has got the same idea.
"They think, 'well if China is doing it, then so can we'."
(Source:www.reuters.com)
