The government of India has been holding several meetings recently where it discusses the risks of cryptocurrency trading and is trialling a central government-backed digital currency. Underlining the danger posed by private cryptocurrencies, which have been developing rapidly for many reasons recently, the authorities are working on a bill that will ban private cryptocurrencies.
Authorities are looking for ways to prevent the rapid activity in the country’s cryptocurrency market before it causes irreversible damage. Government officials announced that they are preparing a bill that will ban “all private cryptocurrencies” with some exceptions, with the analysis of cryptocurrency trading in the country.
The government is preparing the bill
Indian Prime Minister Narendra Modi and some MPs held several meetings to discuss the cryptocurrency market and current developments. Recently, there has been a huge increase in the number of Indians investing in any asset class or stock market. When India’s local cryptocurrency exchanges are analyzed by their trading volumes and user bases, it turns out that it has raised record levels of capital from high-profile investors.
An Indian minister suggested drafting a law, starting work after China banned some cryptocurrencies. Many government officials also expressed their concerns due to the nature of cryptocurrency exchanges and supported the introduction of a limitation. Shaktikanta Das, head of the Reserve Bank of India, also stated that their country needs detailed analysis on cryptocurrencies. He underlined that he did not come across serious and informed discussions in the public sphere and that this was necessary.
At the meeting of the Indian government on the matter, it was agreed that the advertisements of cryptocurrencies to consumers mislead citizens and that crypto trading should be limited. It has been announced that certain “exceptions” will be allowed in the country only to follow crypto money technology and applications. According to the Government of India, the bill called ‘Regulation of Cryptocurrency and Official Digital Currency Law 2021’ will improve the country’s commercial security and become a “facilitator” for the creation of official digital currency.
28306
