What We Know About India’s Cryptocurrency Law.

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What We Know About India’s Cryptocurrency Law.

With a few exceptions, the Indian government aims to outlaw all private cryptocurrencies in order to make way for a central bank-controlled digital currency. But it’s possible that this isn’t as drastic as it appears.

The specifics of the proposed regulation are unknown, leaving cryptocurrency investors expecting to continue trading in what has become a flourishing business in India.

According to Chainalysis, the industry has exploded more than 600 percent in the last 12 months since the Supreme Court overturned a previous ban last year.

According to industry association the Blockchain and Crypto Assets Council, between 15 and 20 million people in Asia’s third-largest economy own cryptocurrency (BACC).

Indians have been besieged with commercials for homegrown crypto exchanges like CoinSwitch Kuber and CoinDCX, which are backed by Bollywood and cricket stars.

Last week, Prime Minister Narendra Modi cautioned that cryptocurrencies could “spoil our youth,” and the Reserve Bank of India has frequently warned that they could cause “severe concerns about macroeconomic and financial stability.”

According to allegations in the media, legislation was in the works to regulate the sector and try to tax it, but it would fall short of an outright ban like that enforced in fellow developing powerhouse China.

A passage on “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” was included in a parliamentary bulletin outlining impending legislation on Tuesday.

The goal was to “establish a conducive framework for the formation of the official digital currency to be issued by the Reserve Bank of India,” according to the document. “The Bill also wants to outlaw all private cryptocurrencies in India, but it makes several exclusions to promote cryptocurrency’s core technology and applications.” One of the most compelling arguments made by proponents of Bitcoin and other cryptocurrencies is that, unlike conventional currencies, they are not regulated by governments.

However, crypto investors are hoping that the exceptions and the government’s expansive definition of “private” would provide some leeway.

Bitcoin and Ethereum, for example, are based on public, not private, blockchain networks, which make transactions more traceable while maintaining some anonymity.

Others, such as Monero and Dash, are built on public blockchains but obscure transaction details to protect users’ anonymity. It’s probable that the Indian government is on the lookout for these.

It’s difficult to make the tokens illegal because they’re just chunks of code with no intrinsic value. They’re being moved. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.

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