- The Finance Minister of India is ready with a cryptocurrency bill.
- The monsoon session of Parliament begins on 19th July.
- The amount of investment done by Indians into cryptocurrencies lies at $6.6 billion.
India’s cryptocurrency bill is being worked upon for more than two years now. Although the Indian crypto industry expected it to be discussed in the Budget session, however, we finally get to see it in the monsoon session of parliament. India is getting closer to safeguard the industry with crypto regulations and rules that are expected to be in the best interest of Indian crypto exchanges and investors.
Although there were speculations on banning cryptocurrencies the millions of investors in India did realize that crypto is safe. Another proposition of this crypto bill is to introduce a digital currency for India. The monsoon session of parliament is about to discuss this much-awaited crypto bill but what does this have for crypto enthusiasts and investors? The most fearful scenario for any investor is the ban on that asset. Is a crypto ban possible in India? Let’s find the answer to these questions but before that what is the Indian cryptocurrency bill?
The monsoon session of parliament is about to discuss this much-awaited crypto bill.
Indian Cryptocurrency bill: What does the crypto bill has to say?
As stated by Finance minister Nirmala Sitharaman, the crypto bill is nothing but spadework done by her team in the best interest of every investor. As she mentioned during one of her press conferences, the Cabinet Note has been prepared and just remains to be discussed in the meetings.
The minister did talk about the availability of a window for fintech, pilot, and experiment projects but the final decision shall rest in the hands of the cabinet. The cryptocurrency bill could not be discussed in the Budget session due to the rising atrocities of Covid-19 which led to the truncation of the session.
As explained on the Parliament’s website the crypto bill aims to provide and create a facilitative framework for the creation of digital currency to be issued by the Reserve Bank of India. The crypto bill also puts a prohibition on the usage of private cryptocurrencies within the country.
The crypto bill aims to provide and create a facilitative framework for the creation of digital currency to be issued by the Reserve Bank of India.
The monsoon session of parliament will surely witness a high wit debate around the propositions made in the crypto bill. Many news reports claim that the Indian crypto bill shall represent one of the strictest policies against cryptocurrencies in the entire world. It could even criminalize possession, issuance, mining, transferring, and trading crypto assets. However, we should not jump to conclusions and wait for the government to clarify its stance on this bill.
The Effect of Crypto bill on crypto exchanges
For crypto exchanges, it’s a silver lining amidst the dark clouds of confusion and arbitrary speculations. Investors and founders of crypto exchanges find it encouraging that the government has finally started to consider the seriousness of this industry. India ranks 11th among the 154 countries concerning the adoption of blockchain technology and chain analysis. The total amount of money invested by Indians in this sector is around $6.6 billion as of May 2021. Although, every crypto investor and exchange looks forward to the regulations at the same time expect it to endorse the trustless system that blockchain technology proposes.
We indeed saw a discouragement on the side of private banks concerning cryptocurrency transactions. However, that did not stop Indian crypto exchanges to find an alternative.
Can India adopt a legal tender like ElSalvador? The economies of the two countries are entirely different. Experts believe that it is not possible to adopt such a tender for a large country like India which is also one of the largest economies in the world. Sumit Gupta, CEO, and co-founder of CoinDCX believed that India should regulate crypto not as currency but more like assets. He even added to that by saying that crypto exchanges would like Central banks to add bitcoin to their treasuries but adoption of a legal tender would imply different possibilities and challenges for India.
The total amount of money invested by Indians in this sector is around $6.6 billion as of May 2021.
The entire crypto industry is hopeful and enthused as the government has started to put its step forward. Read what Chief marketing officer CoinDCX, Ramalingam Subramanian, had to say about building trust in the crypto market and the stance of exchanges on crypto regulations.
Is a crypto ban possible in India?
Cryptocurrencies are about to bring in a revolution in the finance sector. It was no exaggeration when CEO and co-founder CoinDCX, Sumit Gupta, called crypto a global phenomenon that is here to stay. This is indeed hopeful for all Indian crypto enthusiasts and investors.
The paradigm shift offered by cryptocurrencies has been acknowledged by countries across the globe. Crypto assets hold the key to shift the future of global finance. Indian crypto investors do see a bright future in this industry and the government will certainly take steps in the best interest of every stakeholder.
The Final Takeaway
Although the crypto industry in India is in an utter state of confusion the monsoon session has indeed raised hopes for many. Not only for the crypto exchanges in India but all the 1.5 crores and the whole of the Indian crypto space is now looking forward to the monsoon session of parliament. The Indian cryptocurrency bill will regulate the industry which is much needed at this hour.
It’s still not late to learn more about the cryptocurrency industry and blockchain technology while the industry is being regulated. DCX Learn offers various free cryptocurrency courses for beginners.