NDTV has reported that when India releases its new “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” this winter, it may ban all major crypto assets.
The government is also considering introducing a digital currency that is supported by the country’s reserve bank.
The Bill also wants to outlaw all private cryptocurrencies in India, but it makes several exclusions to promote cryptocurrency’s core technology and applications.
Crypto ban generating mass outrage
According to Reuters estimates, India has about 15-20 million crypto investors, with total crypto ownership of $400 billion.
The announcement that the government is banning key crypto assets has sparked a backlash among crypto enthusiasts on Twitter, with many ardent crypto supporters harshly criticizing the government’s attitude on crypto operations in the country.
“If true, this is a disaster that India does not require. By outlawing all private crypto currencies, India is robbing itself of the opportunity to develop a new FinTech environment,” Priyanka Chaturvedi wrote on Twitter.
India’s crypto trading concerns
India’s prime minister recently advised countries to ensure that bitcoin is not used to promote unlawful activities that will “spoil its youth.”
Take, for example, crypto-currency (sic) or Bitcoin. All democratic countries must collaborate on this to guarantee that it does not fall into the wrong hands, endangering our youth,” Indian Prime Minister Narendra Modi said recently.
Meanwhile, the Reserve Bank of India has expressed worry about deceptive marketing that intentionally promotes fraudulent bitcoin investment returns.
Furthermore, officials claim that cryptocurrency trading could lead to an increase in money laundering difficulties, which could jeopardize India’s financial system.
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