Cryptocurrency investors in India were caught off-guard and later confused News It was broken on Friday that the country’s parliament would consider a government-backed bill that would ban “private” cryptocurrencies. With the ruling party controlling both houses of parliament, the bill is likely to become law.
Regulation of the Cryptocurrency and Official Digital Currency Bill 2021 will prohibit cryptocurrency in India and provide a framework for creating an official digital currency provided by the Reserve Bank of India (RBI). The RBI had previously banned crypto trading for almost two years before the ban Reversed Through the Supreme Court in March 2020.
Industry observers say that the definition of “private” government could mean that any digital currency that is not sovereign can be seen as a “private” currency, including Bitcoin. It is not unclear whether cryptocurrencies will be effective as bills for certain indefinite exceptions to the promotion of cryptocurrency and the technology inherent in its use as
An official at a larger cryptocurrency exchange said, “It’s time to get nervous.” Dr. To the Economic Times of India on condition of anonymity.
The move is bound to worry potential and current crypto investors outside the country as well. When a potential obstacle to the development of Bitcoin is named as the price of naming, governments will try to ban it as it should often always be listed. Ray Dalio, founder and co-chairman of Bridgewater Associates, the world’s largest hedge fund, said this past week that he was more enthusiastic about Bitcoin than ever before. Listed One of his remaining concerns about cryptocurrency is the official ban on Bitcoin. It seems to be the only one of the world’s largest economies to feed that narrative. News of a possible ban could contribute to Elon Musk’s Twitter-air response after Bitcoin’s price plummeted on Friday. Shout.
Nishal Sethi, chief executive of Mumbai-based cryptocurrency exchange WazirX, criticized the announcement. Twitter, The bill was designed to help the RBI create its own central bank digital currency (CBDC) by explaining that “there is no such thing as private cryptocurrency” and banning so-called private cryptocurrencies with few exceptions.
“In a larger country like India, work should be done to understand at least the underlying terminology before introducing a bill related to technology in Parliament – it seems like a hasty move,” Sethi said.
Just because a bill is presented does not mean that it will be cleared and warned, “Wrong or expedited laws will set us up [India] A decade later, the right regulations will make India a leader in this technology. ”
If the bill becomes law, India will become the only major Asian economy to ban private cryptocurrencies rather than control them like corporate stocks.