New Delhi: After the government announced on Tuesday that it would introduce a new financial regulation law, India is well on its way to banning all but a few private cryptocurrencies.
The “Cryptocurrency and Official Digital Currency Regulation” bill will provide a framework for the Reserve Bank of India to issue official digital currency and ban all private cryptocurrencies such as 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 ensure that cryptocurrency “does not get into the wrong hands, which can corrupt our youth”.
According to parliamentary bulletin, the law that will be presented to parliament in the next session will allow exemptions to promote the underlying blockchain technology.
Thousands of peer-to-peer currencies that benefit from being outside the scope of government control would be hampered by such a pre-verification strategy.
The government considered making the holding, issuance, mining, trading, and transfer of crypto assets illegal earlier this year.
The announcement that the government has passed 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”, caused the crypto markets to collapse.
On November 23, all major cryptocurrencies fell 15% or more, with Bitcoin falling over 17%, Ethereum nearly 15% and Tether nearly 18%.
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