India plans to introduce, evaluate, and enforce a bill to prohibit “all private cryptocurrencies” in the country, according to a legislative agenda for the winter session.
The Indian government said Tuesday evening that the proposed law will permit “certain exceptions” to promote the underlying technology of cryptocurrency and its applications.
The bill — called Cryptocurrency & Regulation of Official Digital Currency Bill 2021 — will also create a “facilitative framework” for the creation of the official digital currency for the country, the legislative agenda adds.
It’s worth pointing out that the description of the bill is identical to the one New Delhi listed for the previous parliamentary session earlier this year. The winter session of the parliament starts November 29.
Lawmakers in India have been discussing risks of cryptocurrency trading and trialing a central government-backed digital currency for several quarters.
An increasingly growing number of Indians, many of whom have never invested in the stock market or any other asset class, have started to trade cryptocurrencies in recent quarters, prompting concerns among some that they might end up losing their money.
Local cryptocurrency exchanges have reported growing volumes of transactions and user bases this year and raised record capital from high-profile investors. CoinDCX, backed by B Capital, and CoinSwitch Kuber, backed by a16z and Coinbase Ventures, became unicorns this year.
India’s Prime Minister Narendra Modi, and several other lawmakers as well as several industry stakeholders have held several meetings in recent quarters to discuss the cryptocurrency space and some of the recent developments.