MUMBAI, Nov 23 (Reuters) – India is looking to bar most private cryptocurrencies when it introduces a new bill to regulate virtual currencies in the winter session of Parliament, the government said late on Tuesday.
India’s government will introduce a bill to ban private cryptocurrencies and create a framework for a central bank-backed digital money, its parliament said in a shock announcement late Tuesday.
The proposed bill “seeks to prohibit all private cryptocurrencies in India”, the Lok Sabha said, and comes after Prime Minister Narendra Modi warned last week that Bitcoin presents a risk to younger generations and could “spoil our youth” if it ends up “in the wrong hands”.
It is the latest such move by a major emerging economy, after China declared all cryptocurrency transactions illegal in September.
(BBC)-China’s central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin.
“Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China said, warning it “seriously endangers the safety of people’s assets“.
China is one of the world’s largest crypto-currency markets.
Fluctuations there often impact the global price of crypto-currencies.
The price of Bitcoin fell by more than $2,000 (£1,460) in the wake of the Chinese announcement.
Trading crypto-currency has officially been banned in China since 2019, but has continued online through foreign exchanges.
In May, Chinese state intuitions warned buyers they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.In June, it told banks and payment platforms to stop facilitating transactions and issued bans on “mining” the currencies – the trade of using powerful computers to make new coins.
In September, 2021 China declared all cryptocurrency transactions illegal and those who are involved in “illegal financial activities” are committing a crime and will be prosecuted.And foreign websites providing such services to Chinese citizens online is also an illegal activity.
India’s crypto market has boomed since the country’s Supreme Court overturned a previous ban in April last year, growing more than 600 per cent over the past year according to research by Chainalysis.
Between 15 and 100 million people in India (Asia’s third-largest economy) are estimated to own cryptocurrencies, with total holdings in the billions of dollars.
Their investments will now face an uncertain future.
India’s central bank announced in June that it is working to introduce its own digital currency by the end of the year, while warning it has “serious concerns” about private cryptocurrencies like Bitcoin, Ethereum and others.
Analysts say regulation would be central to addressing security risks, with crypto exchanges increasingly targeted by cyber criminals as virtual currency prices soar.
Last Updated on 23.11.2021 by iskova
