Indian Government Moves to Ban All Private Cryptocurrencies

The Indian government has introduced a bill to ban all private cryptocurrencies as the crypto community in the country continues to battle the Reserve Bank of India (RBI).

Indian Government in Talks with Crypto Stakeholders

The Indian government has proposed a new bill seeking to ban all private cryptocurrencies in the country. The government will have certain exceptions that would promote the underlying technology and its uses.

According to the Times of India, ‘The Cryptocurrency and Regulation of Official Digital Currency Bill 2021’ is one of the new bills that were introduced and are currently being considered. This latest development comes as the Reserve Bank of India starts working on launching and issuing its digital currency.

The publication said, “The Bill also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrencies and its uses.”

At the moment, the RBI is examining the feasibility of launching its own central bank digital currency (CBDC) but hasn’t decided on a date to launch the pilot project.

Indian Government Continues to Attack Cryptocurrencies

The RBI has clamped down on cryptocurrencies numerous times over the past few years, but the crypto community in India has fought back and won numerous times. The RBI banned cryptocurrency exchanges from operating in India roughly a year ago, a move that led to some crypto trading platforms to exit the Asian country.

However, the Supreme Court of India overturned the decision and lifted the ban on crypto exchanges earlier this year. Thus, allowing crypto exchanges to operate and thrive in India. The regulatory uncertainty in Indian continues to affect the cryptocurrency market in the country as investors are not sure how the government will view the assets in the long term.

The Indian government has come out to state that it is looking at a progressive regulation of cryptocurrencies, pointing out that an unregulated market cannot be allowed to operate due to the risks of money laundering and other vices.

The government is currently in talks with the cryptocurrency and blockchain organizations in India to determine the best way to regulate Bitcoin and other cryptocurrencies. The outcome will be huge due to India’s place as one of the leading cryptocurrency countries in the world.