The long-awaited Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 will be introduced by the Centre in the upcoming winter session.
The Centre may give crypto investors time to make an exit as cryptocurrency markets continue to spiral ahead of the introduction of a new bill. According to sources, the Indian government will provide a window for investors with funds invested in cryptocurrency to withdraw, after which their accounts will be frozen.
We are expecting the long-awaited Bill on Cryptocurrency and Regulation of Official Digital Currency, 2021 to be introduced by the Centre in the upcoming winter session of Parliament. A new bill will outlaw all private cryptocurrencies in India under ‘some exceptions’. It is currently being tabled before Houses, is expected to be tabled after November 29th, and will need final consideration. The Reserve Bank of India is planning to come up with its own digital money since the investor’s security has been a concern for them. The RBI has also been wary of deceptive media promotions on investments in crypto-currency, which has prompted the move.
The bill will be introduced to “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI). 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”.
The bill was discussed for months and follows a decision by the Narendra Modi-led government in November to make it illegal for crypto ads to mislead investors. It appears that RBI, the finance ministry, and the MHA all participated in this consultative process to make sure this meeting happened.
News on potential restrictions by the Securities and Exchange Commission (SEC) has sent the crypto markets into a downward spiral. The industry is urging the government to take a balanced approach towards regulating crypto assets in India. They have said that this issue has become crucial because currently, it is the country with the highest number of crypto owners in the world. The quality of Indian legislation would be improved if they are well-regulated, even if it’s not completely “blockchain-friendly.”