Cryptocurrency Ban in India

Indian Government preparing to ban private Cryptocurrency in India and the Reserve Bank Of India (RBI) will introduce its own Cryptocurrency in India. The government will bring cryptocurrency and Regulation of Official Digital Currency Bill, 2021 on the agenda for the winter session of Parliament starting from 29th November.

The cryptocurrency market crashed after crypto ban news circulated in News and social media. Bitcoin value domes down from $60,000 to $30,000 other crypto like Etherium, wazirX, etc. also drastically fall.  Also, read: How to Purchase Bitcoin within 5 Minutes through WazirX | How to Purchase Bitcoin, Ethereum | What is Maker Fee and Taker Fee?

Reserve Bank of India’s cryptocurrency

The Bill seeks to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI). While seeking to prohibit all private cryptocurrencies in India, the bill “allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”

Mr. Shaktikanta Das, RBI Governor also worried about the unregulated cryptocurrencies. In his view, unregulated cryptocurrencies are a serious threat to any financial system. He is against allowing Crypto in India.

The Reserve Bank of India (RBI)  also wants to create its own digital currency after seeing the popularity of cryptocurrencies like Bitcoin. RBI was also indicated its wish earlier to the Government. The main aim of RBI is to centralize all Crypto under a central bank.

Private digital currencies/ cryptocurrencies have gained more popularity because of more return on investment. Government has doubts about Private crypto transactions and they are aware of related risks like money laundering, that’s why they want to ban the private digital currencies in India or regulate them.  

When the India Government baning news on cryptocurrencies came to the limelight, all cryptocurrencies, including Bitcoin, Ethereum, DOGE coin have fell and their value slumped by nearly 35 percent. Bitcoin has seen the highest decline during this period with a 35 percent fall. Ethereum crypto has also declined by 30 percent.

WazirX India founder and CEO, NischalShetty says to a news channel “There is no public definition of what exactly is Private Cryptocurrency. There’s panic in the market because people are forming assumptions and multiple theories are doing the rounds.”

Influencer on Cryptocurrency

• WazirX Founder and CEO Mr. Nischal Shetty post his thought on Twitter and say that “All of us want regulation. We’ve been pushing for the last 1000+ days, Finally when the regulation process has begun, why panic? We need to have faith in our lawmakers. There’ll be discussions & deliberations Ultimately, innovation will win the Flag of India.
• He also added that  This is not the end but the beginning of crypto regulations in the India Industry has had the opportunity to present. Law makers understand the growing market. Over 15M+ people own crypto in India There are ways to curb the bad activities and promote innovation Don’t panic “
• Writer, Author, Speaker Monika Halan says that “ Thread on crypto and India’s move to ban privately held ‘currencies’.
• NDTV reporter Sanket Upadhyay says “No response from govt on crypto confusion over new bill and ban. Union min Anurag Thakur dodges questions to say he will restrict himself only to the cabinet meeting today – where obviously – the crypto bill was not discussed.”
•  Forbes Middle East India is considering banning most private #cryptocurrencies when it introduces a new bill to regulate virtual currencies as the government looks to launch the South Asian country’s own digital currency

What are private Cryptocurrencies?

A currency issued by a private entity currency that doesn’t have any tracking address. As per the Crypto market report, there are only 6 Private cryptocurrencies those are:-

1. Monero 
2. Zcash 
3. DASH 
4. Horizen 
5. Verge 
6. Beam

Conclusion 

Cryptocurrencies are unregulated so that, there are no official data about how many crypto investors are in India. But as per crypto industry estimates there are 15 million to 20 million crypto investors in India and the holdings are around Rs 400 billion. What’s your view on Cryptocurrency? 

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