India plans law that will prohibit ‘all private cryptocurrencies,’ with ‘certain exceptions’

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According to the legislative agenda of the winter session, India is planning to introduce, evaluate and implement a bill to ban “all private cryptocurrencies” in the country.

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The Indian government said on Tuesday evening that the proposed law would allow “certain exceptions” to promote the technology underlying the cryptocurrency and its applications.

The legislative agenda states that the bill – called the Regulation of Cryptocurrencies and Official Digital Currency Bill 2021 – will also create a “facilitating framework” for the creation of an official digital currency for the country.

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It is worth noting that the details of the bill are similar to the one New Delhi listed for the last parliamentary session earlier this year. The winter session of Parliament is starting from November 29.

Lawmakers in India have been discussing the risks of cryptocurrency trading for several quarters and are testing a central government-backed digital currency.

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A rapidly growing number of Indians, many of whom have never invested in the stock market or any other asset class, have started trading cryptocurrencies in recent quarters, leading some to worry that they may lose their money. can.

Local cryptocurrency exchanges have reported a growing volume of trading and user bases this year and have raised record capital from high-profile investors. CoinDCX, backed by B Capital, and CoinSwitch backed by Kuber, a16z and Coinbase Ventures, became Unicorns this year.

The Prime Minister of India, Narendra Modi, and several other parliamentarians as well as several industry stakeholders have held a series of meetings to discuss the cryptocurrency space and some of the recent developments in recent quarters.

At least one top Indian minister recently held talks with a leading venture capitalist and suggested that India could draft a law that would support innovation following China’s decision to ban cryptocurrency trading and mining. According to a source directly familiar with the matter.

Meanwhile, several lawmakers have also expressed concern about the nature of advertisements carried by cryptocurrency exchanges. Nerdshala had previously reported that the consensus reached at that meeting was that these “irresponsible advertisements”, which promised to benefit consumers wildly by investing in crypto, were misleading the youth in the country and should be stopped. .

Several Bollywood stars including the great Amitabh Bachchan, Ayushmann Khurrana and Ranveer Singh, who have starred in many of the country’s biggest blockbusters, have promoted the cryptocurrency business in TV and newspaper advertisements.

Lawmakers have also expressed concerns about the potential misuse of using crypto trading vehicles to finance money laundering and terrorism efforts.

Central bank Reserve Bank of India governor Shaktikanta Das said last week that the country needs to have a very in-depth discussion on the issue of cryptocurrencies.

“When the central bank says that we have serious concerns from the point of view of macroeconomic and financial stability, there are deeper issues involved,” Das said at an event. “I have yet to see serious, well-informed discussion on these issues in the public space.”

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