Is India moving towards a Crypto ban?

The Indian government is likely to introduce a cryptocurrency bill in the coming winter sessions of Parliament. The Center will introduce it under the name of The Cryptocurrency and Regulation of Official Digital Currency Bill 2021. Bill seeks to create a facilitative framework for the creation of official digital currency to be issued by RBI & ban all private cryptocurrencies in India. Many have doubts after seeing the points in the bill What is Private Crypto? The new bill will essentially ban all cryptocurrencies and will create an official cryptocurrency in their place which will be operated by the Reserve Bank of India (RBI). Prime Minister Modi said in a virtual conference that all democracies in the world need to come together and make a decision so that cryptocurrency does not fall into the wrong hands. He also believed that virtual money needs to be regulated.

Investments in cryptocurrencies have increased from $923 million in April 2020 to $6.6 billion in May 2021 in India. More than 100 million Indian people were invested in cryptocurrencies and only a few days for them to get their money back from crypto investments. They are in trouble if the government’s decision is not clear on cryptocurrency. What will likely happen if India bans cryptocurrencies? There is a possibility of crashing if the government proposed a complete ban on crypto. There is a chance of pushing cryptos into the black market. India wants to set up a regulatory mechanism to regulate cryptocurrencies but it is unclear who will be the regulator.

Young people who do not even know what the stock market means are investing directly in cryptocurrency. If you take the ‘Coin Switch Kuber’ app for cryptocurrency trading which was launched a year and a half ago, the average age of 1.1 crore users is 25 years old. The Supreme Court on March 4 last year quashed the ban imposed by the RBI on April 6, 2018, for not providing cryptocurrency services. Since then the number of people investing in cryptocurrency through companies like Coin Switch Kuber and Zebpe has been increasing tremendously. The center is grappling with this. While the RBI governor Shaktikant Dhasa has repeatedly expressed concern that there are many problems with cryptocurrency, investigators also warn that they could pose a potential threat to terrorists and money laundering.