India’s government is seeking to prohibit almost all private cryptocurrencies

By Selena 11/24/21 8:49 AM

According to a bill slated for the winter parliament session, India’s government is imposing a ban on virtually all privately issued cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH).

India’s government to ban almost all cryptocurrencies

The decision will allow for “certain exceptions” to advance the technology. At the same time, the ban also sets the stage for issuing the country’s central bank digital currency (CBDC), which has also been mentioned in the bill. Its first version is expected to be launched in 2022, as AZCoin News reported.

“To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote cryptocurrency’s underlying technology and its uses”, as per the bill’s agenda.

Ruchi Bhatia, the journalist, Deputy Bureau Chief-ET Now, Cover Economy, also tweeted.

Big Breaking: Govt to introduce ‘Cryptocurrency and Regulation of Official Digital Currency’ Bill in the winter session. The Bill will create a facilitative framework for an official digital currency to be issued by the RBI, and ban all private cryptocurrencies. pic.twitter.com/rMEeYMEKJe

— Ruchi Bhatia (@29_ruchibhatia) November 23, 2021

This news comes as no surprise to those following regulatory developments in India regarding digital assets. A government source told Reuters last week that the government will ban all cryptocurrencies that lack government approval.

Only when the government has approved a coin can it be traded; others holding or trading it can be fined. However, earlier this November, the Economic Times reported that cryptocurrencies would only be banned in India as a means of payment.

Bitcoin, as well as several significant altcoins, are unlikely to be affected by this news. As AZCoin News reported, Bitcoin price struggled to break above $58,000 yesterday, while altcoins, including Ether and other class 1 tokens, recovered above their seven-day lows.