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Story: Indian govt plans to regulate cryptocurrency trade; 11-24-2021;
India plans to regulate the cryptocurrency trade.
• There are over 15 million plus people in India who own cryptocurrency.
• Earlier this month, Indian Prime Minister passed remarks on cryptocurrency, saying- all democratic nations must work together to ensure cryptocurrency “does not end up in wrong hands, which can spoil our youth” — his first public comments on the subject.
What's Private cryptocurrency, and their examples?
The term “Private” mentioned in the bill that govt is about to introduce in the parliament, refers to the cryptocurrencies that are designed to be private with no trackable or linkable transaction details, on the blockchains. Example includes Monero, Zcash, Dash XMR etc. While the public cryptocurrency includes Bitcoin, Ethereum, Dogecoin, Shiba Inu etc.
Story so far:
Sources from the govt and the industry claims Cryptocurrency won't likely to ban entirely but would instead be regulated, by the law.
A new financial regulation bill by government to go on the floor in the winter session of the parliament hints potential ban on private cryptocurrencies in India.
The 'Cryptocurrency and Regulation of Official Digital Currency' bill will create a facilitative framework for an official digital currency to be issued by the Reserve Bank of India, and ban all private cryptocurrencies.
According to a report by NDTV, industry sources told them that- “fresh draft of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 brings regulation not ban. The crypto stakeholders asked for regulation to keep a check on corrupt practices, and there are likely to be amends to the Bill, they added.”
Tuesday the news surfaced that Indian govt could bring, bill in the winter session of Parliament to bar all cryptocurrencies in India, resulting in a sudden dip in the cryptocurrency market.
Soon the clarification came that the govt is indeed intending to regulate the cryptocurrency market, not banning it, helped the market to stabilize a bit.
• According to Blockchain and Crypto Assets Council, India holds about ₹ 6 lakh crore in crypto assets.
concerns:
• The 'Cryptocurrency and Regulation of Official Digital Currency' bill will create a facilitative framework for an official digital currency to be issued by the Reserve Bank of India, and ban all private cryptocurrencies. Such a pre-verification approach would create obstacles for thousands of peer-to-peer currencies that thrive on being outside the ambit of regulatory scrutiny.
•The new rules are also likely to discourage marketing and advertising of cryptocurrencies, to dull their allure for retail investors, said an industry source who was part of a separate parliamentary panel discussion held on Monday.