Government Planning: In the end of Nov 2021, A list of bills was introduced in Rajya Sabha that been discussed in winter session. Indian government is proposing the creation of an official digital currency while imposing a ban on all Private cryptocurrencies.
The decision of making bills over Cryptocurrency, the Indian government decided based on more growth and rapid increase in investors in digital currencies. In March 2020, RBI unbans cryptocurrency after 2 years in India, But after looking at the hike that crypto got or in May 2021, When China banned cryptocurrency India also wants to do the same that they did to introduce its digital currency. This ban will vanish all private cryptocurrencies which do not follow rules under KYC forms and RBI guidelines. As Mentioned by our Finance Minster Nirmala Sitharaman to the media.
If there any such ban in India same like China done in May 2021, Indian crypto investors will surely reported to give them specific period to sell or hold their crypto and assets on exchange regulates by RBI.
Narendra Modi Statement on Crypto
PM Modi’s said on Nov 18, Democratic nations to work together to ensure that the cryptocurrency does not end up in the wrong hands mostly in terrorism.
In the same month second time, the Prime Minister chaired a meeting on the way forward for cryptocurrency and related issues and said this attempts may mislead our youth through over-promising, non-transparent advertising must be stopped and unregulated crypto markets (private cryptocurrencies) cannot be allowed to become avenues for money laundering and terror financing.
The cryptocurrency bill is among 26 new bills to be announced in the Winter Session of Parliament starts on Nov 29 and end up on Dec 23.
As per Media look: Sunil Prabhu (NDTV Reporter)
Investors will be given a specific time frame to declare their crypto holdings and transfer them to exchanges regulated by the Securities and Exchange Board of India (SEBI), which suggests that private wallets may be banned. He added that this is part of a push from the government to prevent money laundering and terrorism financing.
The government will put its plans for a central bank digital currency (CBDC) with the Reserve Bank of India (RBI) on hold, while it focuses on the crypto exchanges. It will not allow any crypto assets to be recognized as currencies or legal tender.
Dawn Fall in Market
After introducing bill in parliament Bitcoin been dropped by 13% and other by 15%. Such type of actions could result loss in any market. Same thing was noticed in this also. It will took time to reach out again there. In many countries crypto was banned namely
- South Korea
From all above country mentioned their investment in Crypto was increased on large scale, On large scale basically every thing gets over controlled though which through exchanges money laundering, terrorism, drugs dealing, smuggling of illegal weapons were made through cryptocurrencies exchanges or we can say “Dark web” activities are now on cryptocurrencies also.