According to reports, India is preparing to ban all other cryptocurrencies except a few private cryptocurrencies. What does it mean and what might happen in the future?
Throughout the history of cryptocurrency, many countries have tried to prohibit and restrict access to coins and digital wallets. Some people have achieved success in a short period of time, but with the emergence of new coins and the addition of other countries, it was completely opened. According to reports, India has joined the all-out list because they are expected to ban all but after the government announced the introduction of a new financial regulation bill on Tuesday, some private cryptocurrencies appeared. The exchanges with India and cryptocurrencies continue.
A bill was recently proposed and is ready to shake up many of India’s big-name coins. The “Cryptocurrency and Official Digital Currency Regulation” bill will create a convenient framework for the official digital currency issued by the Reserve Bank of India, which will ban all private cryptocurrencies, including Bitcoin and Ethereum.
Let the rain fall…
Prime Minister Narendra Modi stated earlier this month that “all democracies must work together to ensure that cryptocurrency does not fall into the wrong hands, which will ruin our young people.” This is his first direct Make public comments on this issue. According to the parliamentary announcement, the law will be submitted to the parliament at the next session and exceptions will be allowed to promote the underlying blockchain technology. The statement did not provide more details, leaving many people with more questions than answers. Pre-validation methods can create barriers for thousands of P2P currencies that flourish outside the scope of regulatory review. According to reports in recent weeks, Modi recently hosted a meeting to discuss the future of cryptocurrencies, worrying that the unregulated crypto market may become a channel for money laundering and terrorist financing.
An industry source said that the new rules may also prevent the marketing and advertising of cryptocurrencies in order to weaken their appeal to retail investors.
The government may wish to classify cryptocurrencies as asset classes, not currencies, as required by cryptocurrency exchanges. A senior government official told Reuters that the plan is to ban private encrypted assets and eventually pave the way for a new central bank digital currency (CBDC).
The Reserve Bank of India has expressed “serious concerns” about private cryptocurrencies and will launch its CBDC in December. Bitcoin is the world’s largest cryptocurrency, currently hovering at around 60,000 US dollars (53,000 euros), and has more than doubled since the beginning of this year; this coin has the highest grade, with good and bad all over the world. Many people speculate that India holds billions of dollars in cryptocurrency, which puts the government on high alert.
Will this be the beginning of countries strengthening cryptocurrency regulation?