After China banned pretty much everything crypto-related earlier this year, India started moving in the same direction. Now, its government is preparing for new crypto crackdowns as the lond-pending bill that will ban cryptocurrencies in the country approaches.
From what is known, most crypto assets will be banned via the bill that is expected to arrive this coming winter and regulate the industry in the country. The upcoming session of parliament has listed The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, so the framework will absolutely be addressed.
However, the country will not eliminate digital currencies completely, as it still hopes to switch to its own CBDC, eventually. However, all private cryptos in India will be prohibited, with only a few exceptions that will promote the crypto industry’s underlying technology, the blockchain.
The local crypto community’s concerns on the rise
Of course, with India’s massive population developing a growing interest in crypto, there has already been a major backlash from the local community due to the upcoming ban. Many in the country are unbanked, and the crypto industry has great potential to help these people by allowing them access to the global financial industry.
Its DeFi sector is particularly tailored to help those in need, but the country will now place it out of reach with the newest ban. As for the size of India’s crypto community, current estimates say that there are 15 to 20 million investors in India, while the total crypto holdings are at around 400 billion rupees, or $5.4 billion.
In other words, Indian crypto market is huge, and the ban will affect countless investors, plus their families. The parliament member, Priyanka Chaturvedi, called the ban a recipe for disaster, noting that it will rob India of creating the ecosystem that would fit in in the new-age fintech.
Meanwhile, the CEO of India’s largest crypto exchange, WazirX, Nischal Shetty, noted that more people in the government need to be aware of how crypto works, and that it is imperative for them to get educated about digital currencies as soon as possible.
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