The world’s strictest regulation is coming, India will legislate to ban all private cryptocurrencies


Earlier media reports said the officials, the bill would be introduced in India as held, distribution, mining, trading and transfer of encrypted monetary assets are illegal. If the bill is passed, India will become the world’s first large economy that stipulates that it is illegal to hold cryptocurrencies.

If the Indian government wants to attack the hot domestic cryptocurrency market, it may set a global precedent and make it illegal to hold private cryptocurrency by legislation.

The Indian parliament issued an announcement on Tuesday, local time, introducing that the Indian government will submit a bill to the parliament during the parliamentary session starting on November 29, called the “Encrypted Currency and Official Digital Currency Regulation 2021 Bill.”

The bill will help the central bank create a “convenience framework” for the creation of official digital currencies, and seek to ban all private cryptocurrencies in India, but allow certain cryptocurrencies to be exempted to promote the underlying technology and applications of cryptocurrencies.

The media quoted informed sources as saying that the content of the bill has not yet been finalized. However, India has introduced laws to strictly supervise the field of cryptocurrency.

In 2018, the Central Bank of India banned all cryptocurrency transactions, but in March last year, the Supreme Court overturned this ban. In recent months, there have been calls in India for more stringent transaction supervision on virtual currencies , on the grounds that such assets are not regulated, which may stimulate domestic households to invest their savings.

In March of this year, the media quoted senior officials of the Indian government as saying that India will implement a new law banning cryptocurrencies and imposing fines on all those who trade or even hold cryptocurrencies in the country. Whether it is holding, issuing, mining, trading or transferring cryptocurrency assets is illegal. The bill will give currency holders a maximum of six months to clear their positions, and those who fail to process them within the time limit will be punished.

The media at the time described the above-mentioned law as one of the most stringent policies on cryptocurrencies in the world. Once the relevant bill becomes legislation, India will become the world’s first large economy that stipulates that it is illegal to hold cryptocurrencies.

Another media pointed out that Indian parliamentarians have been discussing the risks of cryptocurrency transactions in the past several quarters, as well as launching relevant government-supported digital currency pilots. More and more Indian nationals have started trading cryptocurrencies in recent quarters. Many of them have never invested in stocks and other assets before. This has caused domestic concerns that speculators may lose money.

A memo published more than a week ago showed that on the 13th of this month, Indian Prime Minister Moody’s and a number of industry stakeholders held a meeting. The consensus reached at the meeting was that the advertisements of domestic cryptocurrency exchanges promised that customers will be very profitable. The extremely volatile nature of cryptocurrency transactions has not been disclosed. These irresponsible advertisements mislead young people and must be blocked.

The Central Bank of India opposes private virtual currencies. Central Bank Governor Shaktikanta Das said last week that India needs to conduct more in-depth discussions on cryptocurrency issues. He said:

“When the central bank said that from the perspective of macroeconomics and financial stability, we have deep concerns, and that involves some far-reaching issues. I have not seen any serious and serious concerns about these issues in public. Insightful discussions.”