- India plans to introduce new laws to ban private cryptocurrencies.
- The draft legislation makes no mention of a jail sentence.
- The government’s current plan is not warmly welcomed by cryptocurrency enthusiasts.
- Meanwhile, Bitcoin’s price triggered by a “#bitcoin” tag on Elon Musk’s Twitter profile.
As per the official source,
The Bill also seeks to prohibit all private digital currencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
Crypto ban not welcomed by enthusiasts
India’s plan on crypto ban could deal a severe blow to the country’s growing crypto industry. In fact, after the Reserve Bank of India’s (RBI’s) ban on crypto trading, many crypto startup firms operate in a grey area. Firms include CoinSwitch, Kuber, BuyUCoing, WazirX, CoinDCX, Giotuss, and others.
Also, in March 2020, the Supreme Court lifted the ban on crypto, reversing the earlier order. More so, the apex court rule came after two years since the ban, which took place in April 2018.
In addition, this month’s draft may not be as harsh as the one made last June. A panel proposed a 10-year prison term for crypto traders. However, this draft bill makes no mention of a jail term.
Also, several crypto exchanges and other crypto-based firms gained legitimacy. This was after a court ruling declared digital currencies legal. Furthermore, crypto fans did not warmly receive the government’s current plan.
WazirX Founder Nischal Shetty mentioned in a tweet,
So we have a bill in Parliament around crypto.
Let’s not be afraid. We’ve been preparing for this. We’ve been pushing for regulations.
I believe this bill will be referred to a standing committee for further deliberations.
More thoughts below.#IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) January 30, 2021
Shetty added that there’s a chance that the parliament will receive a new digital currency bill to review. He also believes that this will help the RBI to create its own CBDC. And ban private digital currencies with some exceptions.
COINDCX Co-Founder Sumit Gupta also said that the government should explain what private and public digital currencies are. Bitcoin tends to be seen as a global public digital currency since it does not have a central entity to control and regulate it.
Meanwhile, on Friday, Bitcoin’s price was triggered by a “#bitcoin” tag on Elon Musk’s Twitter profile. As a result, the BTC price had risen up to $33,803, at the time of writing.