India to ban cryptocurrencies

Friday 26 November 2021 14:20 CET | News

India has announced it will go ahead with its plan to ban most cryptocurrencies in the country under a long-awaited bill.

Expectations had grown in recent months that the government may soften its view on digital currencies. The ban would relate to all private cryptocurrencies with certain exceptions to allow the promotion of the underlying technology and its uses. Cryptocurrency prices dropped on Indian exchanges after the decision on the bill's future was announced.

According to a government bulletin, the ban is part of the proposed Cryptocurrency and Regulation of Official Digital Currency Bill that will be introduced in its winter session. The planned legislation aims to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI). The plan to prohibit all private cryptocurrencies appeared to be essentially the same as an earlier draft of the bill submitted in January.

While the description of the bill has remained the same, the exact differences have yet to be confirmed because the latest draft is not yet publicly available. Cryptocurrency trading is likely to continue under the proposed bill, as long as users buy from exchanges which meet certain requirements. The report added that the bill may focus on restricting who is allowed to create cryptocurrencies, with the aim of protecting investors.

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Keywords: cryptocurrency, RBI, central bank, digital currency
Categories: DeFi & Crypto & Web3
Countries: India
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DeFi & Crypto & Web3

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