- The Finance Minister of India is ready with a cryptocurrency bill.
- The monsoon session of Parliament begins on 19th July.
- The amount of investment done by Indians into cryptocurrencies lies at $6.6 billion.
India’s cryptocurrency bill is being worked upon for more than two years now. Although the Indian crypto industry expected it to be discussed in the Budget session, however, we finally get to see it in the monsoon session of parliament. India is getting closer to safeguard the industry with crypto regulations and rules that are expected to be in the best interest of Indian crypto exchanges and investors.
Although there were speculations on banning cryptocurrencies the millions of investors in India did realize that crypto is safe. Another proposition of this crypto bill is to introduce a digital currency for India. The monsoon session of parliament is about to discuss this much-awaited crypto bill but what does this have for crypto enthusiasts and investors? The most fearful scenario for any investor is the ban on that asset. Is a crypto ban possible in India? Let’s find the answer to these questions but before that what is the Indian cryptocurrency bill?
The monsoon session of parliament is about to discuss this much-awaited crypto bill.
Indian Cryptocurrency bill: What does the crypto bill has to say?
As stated by Finance minister Nirmala Sitharaman, the crypto bill is nothing but spadework done by her team in the best interest of every investor. As she mentioned during one of her press conferences, the Cabinet Note has been prepared and just remains to be discussed in the meetings.
The minister did talk about the availability of a window for fintech, pilot, and experiment projects but the final decision shall rest in the hands of the cabinet. The cryptocurrency bill could not be discussed in the Budget session due to the rising atrocities of Covid-19 which led to the truncation of the session.
As explained on the Parliament’s website the crypto bill aims to provide and create a facilitative framework for the creation of digital currency to be issued by the Reserve Bank of India. The crypto bill also puts a prohibition on the usage of private cryptocurrencies within the country.
The crypto bill aims to provide and create a facilitative framework for the creation of digital currency to be issued by the Reserve Bank of India.
The monsoon session of parliament will surely witness a high wit debate around the propositions made in the crypto bill. Many news reports claim that the Indian crypto bill shall represent one of the strictest policies against cryptocurrencies in the entire world. It could even criminalize possession, issuance, mining, transferring, and trading crypto assets. However, we should not jump to conclusions and wait for the government to clarify its stance on this bill.
The Effect of Crypto bill on crypto exchanges
For crypto exchanges, it’s a silver lining amidst the dark clouds of confusion and arbitrary speculations. Investors and founders of crypto exchanges find it encouraging that the government has finally started to consider the seriousness of this industry. India ranks 11th among the 154 countries concerning the adoption of blockchain technology and chain analysis. The total amount of money invested by Indians in this sector is around $6.6 billion as of May 2021. Although, every crypto investor and exchange looks forward to the regulations at the same time expect it to endorse the trustless system that blockchain technology proposes.
We indeed saw a discouragement on the side of private banks concerning cryptocurrency transactions. However, that did not stop Indian crypto exchanges to find an alternative.
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