India plans to introduce a law on banning the cryptocurrencies, in order to create an official virtual currency during the current budget session. It also planned to place the currencies out of step with other Asian nations chosen to regulate the crypto market.
The bill is anticipated to be discussed by the federal cabinet. The legislation seeks to prohibit all the private cryptocurrencies in India with certain exceptions to promote underlying technology of cryptocurrencies. Introduction of this bill creates a major framework to launch the official digital currency of India controlled by Reserve Bank of India. This could impact the ban on several private cryptocurrencies including Bitcoin.
The Indian government has finally moved forward with a cryptocurrency bill. Entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021,” the bill is listed for consideration in the current parliamentary session of Lok Sabha. It is looking forward to designing a substructure for India’s official digital currency that will be issued by the Reserve Bank of India and on the other hand prohibit all cryptocurrencies.
The Indian Government had already proposed a ban on trading cryptocurrencies in the late 2018. The government also announced that the trader may be sentenced to 10 years jail if the person indulged in the trading. Even the transactions through Bitcoin were boycotted by the Reserve Bank of India. But the Supreme Court of India subsequently overturned the crypto ban in March 2020 by allowing the people to trade cryptocurrencies.
The RBI published a bill on Indian payment systems with regards to the popularity of cryptocurrencies. The central bank confirmed that
“it is exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it.”
Why should the government bring positive regulations on crypto?
Introducing the positive regulations on crypto will help the nation to reduce the chances of scams as the crypto space is making the people more wealthy and greedy by offering fake ICO’s and other investment offers to grab the attention of the people. Regulations will secure the markets as well as make an investment safer.
With a positive regulation, cryptocurrency space will evolve in transfer of maturity, stability, exchangeability of all flexible digital assets and the crypto startups will resolve the existing difficulties faced by the Indian businesses. India can be a successful and leading nation around the world and the economy might reach trillion with adaptation of virtual currencies with certain regulations.
What happens if the government bans crypto in India?
There are many disadvantages and drawbacks, if the Indian government prohibits crypto trading. The economy of India might be affected as the digital assets enhance the growth and make the economy stable. Crypto exchanges in India might shut down amid the ban on virtual currencies. The prohibition could affect more than 1 million Indian traders as well as their digital assets and scalability. Cryptocurrencies transactions would be suspended and the users will not be able to convert rupees to BTC and more probability of money laundering will increase.
Views on Ban of Digital Currencies by CEO’s of Top Crypto Exchanges in India
Sumit Gupta (CoinDCX)
The CEO of one of the largest crypto exchanges in India, CoinDCX said that,
“Since, the government is considering introducing the bill during this session of Parliament, we are sure the government will definitely listen to the stakeholders before taking any decisions.
1/ Thread – My Thoughts on the Indian parliament considering a cryptocurrency bill.
The possibility of the bill has been introduced in the recent Lok Sabha Bulletin. #TryCrypto
— Sumit Gupta (CoinDCX) (@smtgpt) January 30, 2021
Rahul Pagdipati (ZebPay)
The CEO of one of the popular crypto exchanges ZebPay has some views on the ban of crypto.
Introducing a bill on digital currency in the Lok Sabha is the first step. Its success will depend particularly on the bill, what it claims as a private crypto currency. Bitcoin is a public good like the internet.
We're proud to be working with all of our partners in #IndianCryptoCommunity.🇮🇳#IndiaWantsBitcoin and a democratic dialogue about giving every Indian access to blockchain and crypto!#IndiaWantsCrypto https://t.co/MP0Sc0mHk8
— ZebPay (@zebpay) February 4, 2021
Nischal Shetty (Wazir X)
The CEO of one of the leading crypto exchanges Wazir X says that,
There are millions of people in India, who own crypto assets. Most of the people’s wealth and money is at stake, the government will surely understand and look into this. Many entrepreneurs are engaged in building crypto and people across the world are trading with billions in crypto everyday. India will not want to be a pioneer in banning crypto.
Over 7 Million crypto holders in India
Over $1 Billion+ crypto assets owned by Indians
Will Government ban & erase all that wealth overnight?
I don’t think so. Government will involve us, the industry, in further discussions and we’ll present our points 💪#IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) January 30, 2021
Sathvik Vishwanath ( Unocoin)
The CEO of crypto exchange and blockchain company UnoCoin has put their views on the ban of crypto.
The Indian crypto space is in an anxiety now. The bill is not new for the Indians and it is not the situation to be ignored.
The Indian crypto industry is in a panic right now based on the price movements I see on the exchanges. The news that govt will consider a bill is not new. However, this is not something that can take lightly as well.Efforts have been put to keep the relevant parties informed.1/2
— Sathvik Vishwanath (Unocoin) (@sathvikv) January 30, 2021
Not sure, whether the bill has a positive outcome on crypto. It can be different from nothing going wrong to everything going wrong. Different strategies can be implemented to handle each situation in a best manner.
Not sure what is in the bill yet except it is negative on crypto. The outcome can vary from nothing going wrong (didn’t reach table) to everything going wrong (got accepted as is).We would take different strategies to handle every case in the best possible way to keep serving.2/2
— Sathvik Vishwanath (Unocoin) (@sathvikv) January 31, 2021
