Cryptocurrency Bill: India seeks to block most cryptocurrencies, create framework for official digital currency
India is seeking to block most private cryptocurrencies as it introduces a new bill to regulate virtual currencies during the winter session of Parliament, the government said late on Wednesday, the government said. Three.
The government will only allow some electronic money to advance the underlying technology and its applications, according to the legislative agenda for the winter session that will begin later this month.
Through the Official Cryptocurrency and Digital Currency Bill Regulation, in 2021, India is also seeking to create a framework for the official digital currency to be issued by Reserve Bank of India.
The central bank has voiced “serious concerns” about private cryptocurrencies and is expected to launch its own digital currency in December.
Bitcoin, the largest cryptocurrency in the world, is hovering around $60,000 (about Rs 44.7 lakh) and its price has more than doubled since the beginning of this year, attracting a lot of local investors . Bitcoin price in India stand at Rs. 35.04 lakh as of 9am IST on 24 Nov.
There is no official data but industry estimates suggest there are 15 million to 20 million crypto investors in India, with total holdings around Rs. 40,000 crore.
Earlier this year, the Indian government considered criminalizing the possession, issuance, mining, trading and transfer of crypto assets, but a bill has not been introduced.
Since then, the government has changed its stance slightly and is now looking to discourage crypto trading by imposing hefty capital gains and other taxes, two sources told Reuters. this month.
But a senior government official told Reuters that the ultimate plan is to ban private crypto assets while paving the way for a new Central Bank digital currency (CBDC).
Prime Minister Narendra Modi preside over a meeting to discuss the future of cryptocurrencies amid concerns that unregulated crypto markets could become avenues for money laundering and terrorist financing, sources told Reuters.
© Thomson Reuters 2021
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