The union government is all set to introduce a Cryptocurrency Bill for consideration and passing in the Winter Session of Parliament, that seeks to prohibit all private cryptocurrencies, barring a few exceptions.
Cryptocurrencies plunged on Indian exchanges following the news into a discount of up to 25% compared to their global peers amid heavy selling.
‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’, aims to create a facilitative framework for creation of the official digital currency to be issued by the RBI. It 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.
Amid panic among investors, the industry has urged investors to remain calm and not arrive at a rushed conclusion. It has also sought nuanced approach from the government, keeping in mind the interest of millions of stakeholders.
Cryptocurrency craze has grown at a furious rate in India after the Supreme Court lifted the ban on digital currencies. The high rate of returns is luring many investors towards investment in crypto coins, despite it being highly volatile and risky. The euphoria is not only limited to metros but is garnering lot of interest from young population in tier-II and tier-III cities.
There are reports that the government is considering a proposal to treat cryptocurrencies as a financial asset while safeguarding small investors, Bloomberg reported citing people familiar with the matter.
The discussions come as authorities race to finalize a bill Prime Minister Narendra Modi’s government wants to present to parliament in the session starting Nov. 29. The legislation may stipulate a minimum amount for investments in digital currencies, while banning their use as legal tender, the people said, asking not to be identified as no final…
