Cryptocurrency News

India may Propose New Bill to Ban Crypto Assets

The Indian Parliament has not issued a final verdict on the matter of cryptocurrency trading. During the current year, when Bitcoin managed to register two ATHs, the interest of investors in the digital currency market has kept increasing. The Standing Committee of the Indian Parliament has recently called for an all-party conference to debate on the matter.

This meeting is going to be attended by the most prominent cryptocurrency stakeholders in the region. Since the government is trying to take the middle ground by avoiding the implementation of a blanket ban on crypto trading and aiming to protect the interest of the investors, other major stakeholders like business leaders, private sector associations, and industry experts are also going to attend the meeting.

Central Bank Warning about Crypto Trading

Shaktikanta Das, the governor of RBI or Reserve Bank of India, issued a public statement on Wednesday in the form of a warning against cryptocurrencies. He claimed that the financial stability of the country is threatened by the increasing number of crypto traders. He further added that the massive amount of cryptocurrency investors reported by the local exchange platforms seems to be exaggerated.

Das also went on to claim that, on average, the majority of the crypto exchange clients have invested not more than $13 to $40 per person. Considering the recent issuance of this statement, the financial analysts in the country are certain that this meeting will have a significant impact on the future of cryptocurrencies in the region. However, the secretary of Lok Sabha, who is going to chair this meeting, has not issued the official agenda thus far.

RBI governor Das has claimed that the central bank has prepared a presentation on crypto trading for the government that is under review for the time being. Back in 2018, RBI attempted to impose a crypto exodus instructing banks and other financial institutions to discard any type of cryptocurrency payments. However, in 2020 the Supreme Court ruled against this ban and declared that cryptocurrencies are not illegal.

Statistics show that the millennials and the Gen Z investors in India are moving rapidly towards cryptocurrency trading options and abandoning traditional investment avenues like stocks trading. The progress on the Official cryptocurrency Bill is also under review by the parliament that has yet to vote on the matter of CBDC.

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