As markets and pundits speculate on the consequences of the Centre’s decision to introduce a bill to regulate cryptocurrency, sources within the security establishment told CNN-News18 that the regulation would not be an outright ban.
The Centre’s decision to introduce a bill in the next winter session of Parliament to regulate cryptocurrency sparked a ripple effect, with bitcoin prices plunging to a month’s low.
As markets and pundits speculate on the consequences of the move, sources within the security establishment have said CNN-News18 that the regulation will not be an outright ban.
âA regulatory mechanism will be in place so that crypto is not misused. The government is concerned about the clandestine transactions taking place against cryptocurrency – particularly its role in ‘hawala’ and the financing of terrorism, âthey said.
They added that the cryptocurrency will not be recognized as legal tender because it is dangerous to the country’s currency and tax system. “A strict mechanism will be put in place for law enforcement to trace the origin of cryptocurrency used for illegal or anti-national purposes,” they said.
Also Read: Center To Introduce Cryptocurrency Regulation Bill In Winter Session: Everything You Need To Know About Proposed Legislation
The Cryptocurrency and Official Digital Currency Regulation Bill, 2021, is among 26 bills listed for introduction during the winter session, starting November 29, according to Lok’s website. Sabha.
It comes a week after a parliamentary panel, chaired by BJP leader Jayant Sinha, discussed the pros and cons of crypto-finance with various stakeholders, and an agreement was reached that digital currencies cannot not be stopped but must be regulated.
The bill seeks to “ban all private cryptocurrencies in India” but allows “certain exceptions to promote the underlying technology and its uses”. It also aims to “create an enabling framework” for the creation of the official digital currency to be issued by the RBI.
On Wednesday, all major digital currencies were down around 15 percent and more, with Bitcoin down around 18.53 percent, Ethereum 15.58 percent, and Tether 18.29 percent. Based on data from CoinDesk, a New York-based news site specializing in cryptocurrencies, Bitcoin’s value depreciated to $ 55,460.96 on Tuesday night, a further 20% drop from an all-time high of nearly 69,000 $ which it had reached earlier in November.
India has taken a good note of cryptocurrencies, thanks to its robust growth in the country amid a lack of regulation, but the government has rushed to pass laws to regulate the digital currency industry. .
Prime Minister Narendra Modi said last week that cryptocurrencies must not fall into “the wrong hands and spoil our youth”, urging all democratic nations to come together and ensure that such things do not happen. not. The government and the RBI had recently hinted at creating tight regulatory control over cryptocurrency to prevent money laundering and terrorist financing, rather than banning it altogether.