Amidst the lightning-paced developments in the cryptocurrency space in the country, the industry has urged investors to remain calm and not jump to conclusions in haste.
The Central Government has listed the Cryptocurrency Bill for passage in the winter session of Parliament, the bill aims to ban all private cryptocurrencies, with a few exceptions.
“The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” to be introduced in the Winter Session of Parliament beginning November 29, “To create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India The bill also seeks to ban all private cryptocurrencies in India, however, it allows for certain exceptions to promote cryptocurrency and the technology underlying its use”.
Digital currencies on Indian exchanges fell in discount of up to 25% compared to their global peers, as the government listed a bill to ban all private cryptocurrencies in the country. Crypto prices in India generally trade at a premium to the global markets.
“It is difficult to understand what the government means by private cryptocurrencies. Bitcoin, Ether etc. are public cryptos built on public blockchains and have their own specific use cases,” said Nischal Shetty, founder of WazirX.
Nischal Shetty further added, “They need to run smart contracts and write to the distributed ledger that they are built on top of. People cannot use INR or USDT to pay fees on the Bitcoin or Ethereum blockchains.”
BuyUcoin CEO Shivam Thakral said that it is hoped that the bill will accommodate the aspirations of Indian crypto owners, Indian crypto entrepreneurs and investors who have placed their faith in India’s crypto growth story.
“The crypto bill should be flexible enough for young blockchain projects to flourish and we strongly believe there is a strong case for a standardized procedure for new cryptocurrencies to be listed on any exchange in India for business.
Thakral said, “I anticipate that popular crypto-assets like bitcoin and ethereum will be pre-approved by the regulators to list on the exchange. We also request the government to give immediate clarity on the taxation and filing of crypto assets. “
Zebpay co-CEO Avinash Shekhar said the industry is awaiting more details about the bill to be introduced in the winter session of Parliament. Several positive steps have been taken by the government to learn and understand crypto and its impact on all stakeholders- investors, exchanges, policy makers.
“Therefore, we are looking forward to a crypto bill that takes into account all the input from those discussions,” he said.
Currently, there is no regulation or any restriction on the use of cryptocurrencies in the country. Against this backdrop, Prime Minister Narendra Modi held a meeting on cryptocurrencies with senior officials earlier this month, and there are indications that stronger regulatory steps may be taken to tackle the issue.
In recent days there has been an increase in the number of advertisements promising easy and high returns on investment in cryptocurrencies, even featuring movie stars, amid concerns about such currencies from investors. is being used to entice you with misleading claims.
Last week, the Standing Committee on Finance, headed by BJP member Jayant Sinha, met representatives of crypto exchanges and BACC, and came to the conclusion that cryptocurrencies should not be banned, but should be regulated.
RBI has repeatedly reiterated its strong views against cryptocurrencies, stating that they pose a serious threat to the country’s macroeconomic and financial stability and the number of investors trading on them as well as their claimed Doubt the market value as well.
RBI Governor Shaktikanta Das also reiterated his view against allowing cryptocurrencies, saying they pose a serious threat to any financial system as they are unregulated by central banks.
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