Cryptocurrency prices have fallen sharply in India’s domestic trading following reports that the government plans to introduce a bill in the next winter Parliament that could block most secret currencies. Among all the fears, uncertainties and doubts (FUD) are two factors.
What does the government want to do?
Does the government want to ban cryptocurrency? Or they want to regulate it by adding new terms and conditions to it.
What are ‘private’ cryptocurrencies?
The Indian Parliament – notably, the Lok Sabha House – set to discuss the country’s cryptocurrency legislation in the week beginning November 29.
The fact that the things written on the agenda did not change caused a slight decrease in sales.
The Indian crypto exchange, WazirX, even cracked down on investors who could not withdraw or deposit crypto currency.
The bill also seeks to restrict all securities in India, however, allowing for alternatives to promote the basics of cryptocurrency technology and its use, “the crypto bill negotiations agenda said. Ethereum and dogecoin, dropped by about 15% to 20% according to the Indian rupee on Wednesday.
Under the framework of the Cryptocurrency and Regulation of the Digital Money Bill, 2021. Mining, seizing, selling, issuing, transferring or using cryptocurrency in India is punishable by fines or imprisonment for up to 10 years or both.
Maybe India also wants to develop a legal digital currency framework. Which will be issued through bills by its central bank.
What will the government decide on this?
The draft bill acknowledges that tokens have benefits such as better recordkeeping and more efficient transboundary payments. But also raises concerns about the potential use of cryptocurrencies in financial transactions, consumer risks and national financial threats.
Currently, there are no regulations in India regarding the use of cryptocurrencies. With the new bill, the government is looking to ban “all private funds”. although there are exceptions that haven’t been clarified. The Indian government is likely to introduce its crypto bill during the Parliamentary Winter Session, which starts on November 29.
This will be the second time this year that the government has included the list of crypto bills as an agenda item.
The bill expected to take a softer position.
The bill is expected to take a softer position on cryptocurrencies compared to the 2019 framework. Which banned all forms of crypto operations – including trading, mining or holding cryptocurrency.
Domestic cryptocurrency trading platform WazirX saw the hard work of users, which led to it crashing late on Tuesday. Many WazirX users, who are trying to sell their funds. Complain that they are not able to buy or sell cryptocurrencies on the platform.
WazirX CEO Nischal Shetty urged investors not to panic and show faith in cryptocurrencies.
This has raised fears within the crypto community, about whether lawmakers will be inherently biased towards the cryptocurrency industry.
And whether the ruling party will pass legislation without considering participants’ comments.
“This statement creates a lot of confusion because developers and investors in the crypto world know that the purpose of blockchain is to be open, there is no such thing as a public league and private crypto.”
India’s dispute over attempts to control crypto goes back at least five years after the Reserve Bank of India (RBI) began recognizing crypto currency in 2013. But, as we all know, these digital assets have been around for over a decade. Many experts say the regulation that legalizes crypto can be acceptable since it will authorize the industry.
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