Plan to ban most cryptocurrencies : India is set to go ahead with its plan under a long-awaited bill.
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In this article main highlights are the planned legislation aims "to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI)".According to a government bulletin, the ban is part of the proposed Cryptocurrency and Regulation of Official Digital Currency Bill that will be introduced in its winter session.In recent months it was thought the government may soften its stance on cryptocurrencies, possibly seeking to have them regulated as assets instead of a means of payment.While the description of the bill has remained the same, the exact differences have yet to be confirmed because the latest draft is not yet publicly available.
Market impact
The value of several digital currencies reportedly dropped following the announcement of the bill. Whereas, Bitcoin fell more than 13% on the Indian exchange site WazirX, while Shiba Inu and Dogecoin both dropped more than 15%.However, Glen Goodman, author of The Crypto Trader, told the BBC's World Business Report radio programme that the global impact was "relatively small"."Even when China decided to ban cryptocurrency - and that was a really big deal - it didn't completely massacre the crypto markets," he said According to a video report by local news publication India Today, Cryptocurrency trading is likely to continue under the proposed bill, as long as users buy from exchanges which meet certain requirements.
The report added that the bill may focus on restricting who is allowed to create cryptocurrencies, with the aim of protecting investors.However Mr Goodman pointed to the recent ban in China, with the cryptocurrency used to fund the project.
"Governments take very different approaches to how they see it," he said. "As a threat, an opportunity, or somewhere in-between."
Mr Goodman said the Chinese government wants to get rid of all digital currencies except the one it is creating.
"They want to dominate cryptocurrencies, and it seems to me like the Indian government has got the same idea.
"They think, 'well if China is doing it, then so can we'."
Author:CA. Dr. Gaurav Bhambri
Category : Income Tax | Comments : 0 | Hits : 947
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