Introduction
Another of the famed price swings that cryptocurrencies are known for began amid news that the Indian government is intending to introduce a bill in Parliament to regulate these unregulated assets. Currently looking at the situation India’s Crypto population is one of the biggest. The Reserve Bank of India has long been sceptical about cryptocurrencies, even as it reveals plans to develop its own digital money. Here’s all you need to know about the cryptocurrency industry in India.
Current Population Trading in Cryptocurrency
According to industry estimates, over 10 crore Indians, the bulk of whom are young but also include senior folks, have invested in cryptocurrencies. In terms of the overall value of holdings, the country is estimated to have about 10.07 crore cryptocurrency owners, putting it well ahead of the US.
According to CREBACO, a cryptocurrency research firm, total cryptocurrency investments would surpass USD 10 billion by late 2021, up from just under USD 1 billion in April 2020.
As word of the crypto Bill being queued up for legislation spread, significant drops in the value of key cryptocurrencies like Bitcoin, Ether, and others were reported; however, the development was unrelated to the crypto Bill’s expected tabling during Parliament’s next Winter Session.
Cryptocurrency Hesitancy?
On his way to Australia the Indian PM through the platform of Sydney Dialogue – a stage specifically meant for discussing Cyber and other emerging technologies in November said that all democratic countries must form a consensus on the harmful effect of cryptocurrency so that youths are not wandered by this new technology.
The Prime Minister had earlier led a discussion on cryptocurrencies, during which it was highlighted that unregulated crypto markets might be used for money laundering and terror financing, as well as concerns about bogus claims of enormous returns on cryptocurrency investments and the best bitcoin trading strategy for beginners.
According to insiders, during the meeting, the practice of luring investors, particularly young people, with marketing that over-promised rewards while concealing risks was discussed.
What is the current stand on the Issue?
Despite Union Finance Minister Nirmala Sitharaman’s announcement in July that the delay was just to see when the Cabinet could take up and evaluate it so that we could advance it, the cryptocurrency bill was not brought in Parliament during this year’s Budget and Monsoon sessions, according to sources.
In the legislative processes for the Winter Session, Bill’s terminology stayed the same, claiming that it wants to “create a conducive environment for… the Reserve Bank of India’s official digital currency to be produced” as well as outlaw any private cryptocurrencies in India. But the bill also acknowledges the emerging technology driving bitcoin and thus ensures enough exemptions for its growth in a positive environment.
Reuters reported during the Budget Session that the Bill would be one of the world’s toughest anti-crypto regulations (and) would criminalize the possession, issuing, mining, trading, and transferring of crypto-assets, citing an anonymous government source. If this happened, investors would be given a window to sell their crypto assets, after which penalties would be imposed, according to the company.
The Finance Minister’s comments showed that the government was doing well. I can just offer you this indication,” she said on CNBC-TV18, adding that “a very calibrated attitude” toward bitcoin will be adopted.
After being scheduled for presentation in the Winter Session, sources in the security establishment claimed that the government will not opt for an outright ban and that regulatory mechanisms will be put in place to avoid cryptocurrency abuse. They have stated, however, that cryptocurrencies would not be recognized as legal tender since doing so would jeopardize the country’s fiat currency and taxation system.