In recent days, the cryptocurrency market in India has seen a heavy downward trend. And this situation has occurred after the announcement of the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 by the Union Government. On 23 November, the Government of India issued a bill that aimed to ban all private cryptocurrencies in India. Yet, some specific exceptions will also be made during the upcoming Winter Session of Parliament, which is scheduled to commence on November 29.
The Parliament released a bulletin and listed an introduction of the Cryptocurrency and Regulation of Official Digital Currency Bill 2021. This Bill is among the 26 draft laws listed for being settled in the Parliament during Winter Session.
Following are some notable aspects that are indicated in the Bill regarding Cryptocurrencies in India.
- Introduction and consideration of a framework for the creation of Official Digital Currency to be circulated by the Reserve Bank of India (RBI).
- Prohibition of all private cryptocurrencies in India.
- Allowing only a certain exception in the crypto to promote the technology of cryptocurrencies and their regulation in India.
- The final decision on all these aspects will be done soon in the upcoming Winter Session, which will start on November 29.
When Parliament released the bill, the prices of major cryptocurrencies witnessed a notable drop the next day, due to the panic selling by its investors. Major cryptos like Tether fell by 18%, Bitcoin by 17%, and Ethereum by 15% after the announcement. The government has presented several beneficial and unfavorable alterations in its decisions regarding cryptocurrency in India. The final print of the Cryptocurrency Bill and the decisions regarding it are yet to be disclosed.
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