The Cryptocurrency Prohibition Bill in India

So , from the last weeks January we have heard that Government of India lists bill to ban Bitcoin ( CryptoCurrency) in India .. Why ? Let’s assume the reasons :

  1. No one knows where the money is used , i mean people invest lot money but no one knows where the money will be used
  2. No one can track end to end money , you never know whether the money is used for money laundering or any such stuff as cryptocurrencies are completely untraceable
  3. Government is scared because of their inability to regulate the Crypto market because the Crypto market because of Lack of Infrastructure
  4. Although there are speculations that India might introduce it’s own Digital Currency

On 29 January 2021, in circular number 2,022, in the ‘E’ new bills section under Legislative business, the Indian government proposed a new bill. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 as named by the government will “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India and eradicate rest of them ”

This is not the first time Indian lawmakers have taken such a strong position on cryptocurrencies. In 2018, an Indian government panel recommended banning all private cryptocurrencies and proposed up to 10 years of jail time for offenders.

If the bill becomes law, India would become the only major Asian economy to ban private cryptocurrencies rather than regulating them like corporate stocks

Nischal Shetty, CEO of Mumbai-based cryptocurrency exchange WazirX, criticized the announcement via Twitter, explaining that “there is no such thing as a private cryptocurrency” and the bill is aimed at helping the RBI create its own central bank digital currency (CBDC) by banning so-called private cryptocurrencies, with some exceptions.

A country as large as India should at least work on understanding the underlying terminologies before presenting technology-related bills in Parliament — seems like a hurried move,” said Shetty