In the upcoming winter session of Parliament, the Centre is expected to introduce legislation banning all cryptocurrencies in India, with a few exceptions, and creating a framework to control digital currency issued by the Reserve Bank of India (RBI).
In the upcoming winter session of Parliament, the Centre is expected to introduce legislation banning all cryptocurrencies in India, with a few exceptions, and creating a framework to control digital currency issued by the Reserve Bank of India (RBI). As a result, all major digital currencies declined by roughly 15% or more, with Bitcoin falling by around 18.53 percent, Ethereum by 15.58 percent, and Tether by 18.29 percent.
Here’s a 10-point summary of this major storey:
- The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is scheduled to be introduced in the Lok Sabha during the winter session, which begins November 29.
- The bill aims to “create a conducive environment for the creation of the RBI’s official digital currency.” It also aims to outlaw all private cryptocurrencies in India, with some exceptions to promote cryptocurrency’s underlying technology and applications.
- The Reserve Bank of New Zealand has expressed “serious reservations” about private cryptocurrencies. Bitcoin, the world’s most popular cryptocurrency, is currently trading at approximately $60,000, having more than doubled in value since the beginning of the year, attracting swarms of local investors.
- Industry estimates put the number of crypto investors in India at 15 million to 20 million, with total crypto holdings of around Rs 40,000 crore ($5.39 billion).
- There have recently been an increase in the number of advertisements promising easy and high returns on cryptocurrency investments, amid concerns that such currencies are being used to deceive investors with false claims.
- Last week, the Standing Committee on Finance, chaired by BJP member Jayant Sinha, met with representatives from cryptocurrency exchanges, blockchain, and the Crypto Assets Council (BACC), among others, and came to the conclusion that cryptocurrencies should not be banned, but regulated.
- In the last decade or so, private digital currencies have grown in popularity. Regulators and governments, on the other hand, are wary of digital currencies and are concerned about the risks they entail.
- On March 4, 2021, the Supreme Court struck down an RBI circular dated April 6, 2018, prohibiting banks and entities regulated by it from providing virtual currency services.
- Prime Minister Narendra Modi urged all countries to ensure that cryptocurrency does not “end up in the wrong hands” during a keynote address at the Sydney Dialogue on November 18.
- El Salvador is now the only country that recognises cryptocurrencies as legal cash.