Nov 25, 2021 12:50:00

Indian government announces bill banning crypto assets

The Government of India has submitted a bill banning 'all private crypto assets in India' and announced that it will be considered in the winter parliament. In recent years, while

some countries such as El Salvador have made Bitcoin, a crypto asset, a legal tender, trading of crypto assets is illegal in China, and it is reported that crypto assets may be cracked down in India as well. increase.

23.11.21.pdf
(PDF file) http://loksabhadocs.nic.in/bull2mk/2021/23.11.21.pdf

Indian Government Submits Bill to Ban Most Cryptocurrencies, Dashing Hopes for Friendlier Measure
https://www.coindesk.com/business/2021/11/23/indian-govt-submits-bill-that-would-ban-most-cryptocurrencies-dashing-hopes-for-friendlier-measure/

No Ban, Govt Regulating Cryptocurrency to Check Role in'Hawala', Terror Funding: Sources
https://www.news18.com/news/india/no-ban-govt-regulating-cryptocurrency-to-check-role-in-hawala-terror-funding-sources-4480322.html

India to ban private cryptocurrencies and launch official digital currency | India | The Guardian
https://www.theguardian.com/world/2021/nov/24/india-to-ban-private-cryptocurrencies-and-launch-official-digital-currency

India Crypto Ban About Payments, Not the Asset Class --Blockworks
https://blockworks.co/india-crypto-ban-about-payments-not-the-asset-class/

It has been reported that the Indian government has been cracking down on crypto assets for some time, and is considering a total ban on crypto assets in March 2021. However, as the government's attitude towards crypto assets has softened over the last few months, it was hoped that the final bill would be looser.

India considers total ban on crypto assets, even 'holding' is penalized-GIGAZINE

However, the outline of 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021', which was included in the list of bills to be taken up by the parliament during the winter session, is 'This The bill aims to ban all private crypto assets in India. '

The outline of the bill also states ' to create a framework to promote the creation of official digital currencies issued by the Reserve Bank of India ', and this regulation is part of the government's preparations for launching official digital currencies. Is shown. The Reserve Bank of India, the central bank of India, is known for its conservative view of crypto assets, and Shaktikanta Das said in November that 'blockchain technology has existed for 10 years. , it can grow even without encryption assets ',' the central bank from the point of view of macro-economic and financial stability and (in encryption assets) has been holding a serious concern ' was mentioned . 'It's important for all democracies to work together to prevent (cryptographic assets) from falling into the wrong hands and ruining young people,' Prime Minister Narendra Modi said in a November speech. He insisted that it was necessary to crack down on crypto assets.

Following the announcement of the name and outline of the bill, Bitcoin has plummeted by more than 13% and SHIBA INU and Dogecoin have plummeted by more than 15% on the Indian crypto asset exchange, but the impact is Indian crypto. It was limited to the asset exchange.

At the time of writing the article, only the name and outline of the bill are known, so it is unclear what the actual content is, and it is not clear whether it is the same as the tightly tightened draft announced in March. Hmm. The outline states, 'This bill seeks to ban all private crypto assets in India, but allows certain exceptions to promote the basic technology of crypto assets and their use.' It is possible that there is still room for admitting existing crypto assets. Also, the term 'private crypto assets' mentioned here is an ambiguous term, and some crypto assets may be exempt from regulation depending on the interpretation.

In addition, a source in the government's security department

told CNN-News18 , an Indian TV news channel, that the government is concerned that crypto assets will serve as illegal transactions and terrorist funds, according to this bill. Regulation states that the main purpose is to prevent the misuse of crypto assets. Government sources also said, 'At the Prime Minister's meeting earlier this month on this issue, there was consensus that the actions taken by the government in this area are'progressive and positive'. It was also argued that the unregulated crypto market should not be used as a means of money laundering or terrorist financing, 'he told CNN-News18.

According to a report from news media India Today , cryptocurrency trading is likely to continue under the new bill as long as users purchase from crypto exchanges that meet specific requirements. The bill is intended to protect investors and may focus on restrictions such as permits when issuing new crypto assets.

There is also a view that the regulation by this bill will not be so strict because 'the government knows more about crypto assets than it was in March'. Already, India's digital asset ecosystem is growing very fast, with individual investors spending hundreds of billions of dollars on crypto assets and NFTs, as well as the crypto asset industry with 50,000 people directly or indirectly. It is difficult to ban all crypto assets because it creates employment.

Nischal Shetty, CEO of WazirX, India's crypto asset exchange, claims the bill is a step forward for India's crypto asset sector. Aditya Singh, who runs a YouTube channel related to crypto assets, said, 'I think (the new bill) will be more advanced than the previous one, but we need to keep an eye on how much progress we can make.' Said.