India may ban all but certain private cryptocurrencies. Is this what you think it means?
Many countries tried to restrict or ban access to digital wallets and coins throughout the history of cryptocurrency. Some of these have seen limited success, but it’s only a temporary one. Then the doors are blown wide open by newer coins and countries joining in. India is reportedly joining the ranks of those who are willing to do everything, and they plan to ban private cryptocurrency after the Indian government on Tuesday announced that it would introduce a new financial regulatory bill. It continues to be a back-and forth battle with India over crypto.
Recently, a bill was presented that will change the landscape for Indian coins. 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 that will look to ban all private cryptocurrencies, which includes Bitcoin and Ethereum.
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Prime Minister Narendra Modi said earlier this month that “all democratic nations must work together to ensure cryptocurrency does not end up in wrong hands, which can spoil our youth.” It was his first public comments spoken directly on the subject. According to the parliament bulletin, exceptions will be allowed to support the underlying blockchain technology. Many were left with questions rather than answers after the statement was made. The pre-verification process would make it difficult for thousands of peer currency that are not subject to regulatory oversight. Modi, who chairs a meeting about the future cryptocurrency, recently raised concerns that crypto markets unregulated could be used to finance money laundering and terrorist financing.
The new rules are also likely to discourage marketing and advertising of cryptocurrencies in order to dull their allure for retail investors, according to an industry source who was part of a separate parliamentary panel discussion held on Monday.
According to crypto exchanges’ demands, the government may consider classifying crypto as an investment class rather than a currency. Reuters was told by a senior official from the government that it is the intention to ban all private crypto-assets. This will eventually pave the way towards a Central Bank Digital Currency.
The Reserve Bank of India, which has voiced “serious concerns” about private crypto, is set to launch its CBDC by December. Bitcoin, the world’s biggest cryptocurrency, is hovering around $60,000 (€53,000) and has more than doubled since the start of this year; this coin has the highest rank and is all over the world both for good and some bad. The government is on alert because many people speculate billions about crypto that’s located in India.
Is this the first step in countries regulating cryptography?