As per the local news source, NDTV, India might ban all major crypto assets when it introduces the new “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021″ this winter. The government is also exploring the possibility of issuing a digital currency backed 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 the underlying technology of cryptocurrency and its uses.”
India banning crypto stirs community backlash.
According to data from Reuters, India accommodates roughly 15-20 million crypto investors in India, with total crypto holding amounting to $400 billion. The news of the government banning major crypto assets has incited crypto community backlash on Twitter where dedicated crypto proponents have strongly criticized the government’s stance on barring crypto activities in the country.
If true, this is a recipe for disaster India doesn’t need. Banning ALL private crypto currencies is basically killing the space- robbing India of creating an ecosystem for new age FinTech. Anyway, expecting any better from GoI was wishful thinking. https://t.co/6hYt2I4LxT
— Priyanka Chaturvedi🇮🇳 (@priyankac19) November 23, 2021
Concerns surrounding cryptocurrency trading in India
Recently the prime minister of India had urged nations to ensure that cryptocurrency is not utilized to promote illegal activities which can result in “spoiling its youth.”
“Take crypto-currency (sic) or Bitcoin for example. All democratic nations must work together on this and ensure it does not end up in the wrong hands, which can spoil our youth.” as stated by PM Modi on Nov 18.
Meanwhile, India’s central bank has also expressed concerns about misleading advertisements that have been actively promoting false returns on cryptocurrency investments. Moreover, officials further state that cryptocurrency trading could result in increased money laundering issues that can pose a threat to the Indian financial infrastructure.
Get an edge on the cryptoasset market
Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.
Join now for $19/month Explore all benefits
Like what you see? Subscribe for updates.