Crypto markets crashed following news of the government introducing a Bill in the Parliament to prohibit all private cryptocurrencies in India, barring a few exceptions to “promote the underlying technology of cryptocurrency and its uses”.
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As of 11:15 PM on November 23, all major cryptocurrencies saw a fall of around 15 per cent or more, with Bitcoin down over 17 percent, Ethereum falling by close to 15 per cent, and Tether down by almost 18 per cent.
The official document on scheduled house proceedings today showed that the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is set to be introduced in the Parliament in the upcoming winter session that starts on November 29.
The Bill will prohibit all private cryptocurrencies in India with certain exceptions and is expected to be taken up for final consideration and passing during the winter session.
The government says that the Reserve Bank of India will issue its own digital currency. The objective is, “To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India.”
Security of investors’ money and misleading advertisements in the media regarding investment potential and risks have long been a cause of concern.
The government has held several meetings with all stakeholders to discuss the regulation of digital currencies. Prime Minister Narendra Modi has also chaired a high-level meeting with officials from various ministries and RBI on the issue.
The first-ever Standing Committee on Finance on digital currencies, chaired by BJP’s Jayant Sinha, to discuss “opportunities and challenges” of crypto finance on November 16 had reached a consensus that cryptocurrency can’t be stopped but must be regulated.
While delivering a keynote address at the Sydney Dialogue on November 18, Prime Minister Narendra Modi had urged all countries to ensure that cryptocurrency does not “end up in the wrong hands”.
The Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) have also voiced concerns about the unregulated growth of cryptocurrencies in India, keeping vulnerable retail investors in mind.
El Salvador is the only country to recognise Cryptocurrency as a legal tender.