The mysterious draft bill which has been talked about for a while and predicted that crypto assets will become legal, has emerged.
India seems to be following China in crypto policy. Likewise, it will continue its repressive practices regarding cryptocurrencies in Iran. India has taken action in recent months to enact a new law. However, this bill was delayed for undisclosed reasons. Now it turns out that this includes more stringent bans.
India Prepares to Ban Cryptocurrencies
Following the work of the Indian Parliament, the PRS Legislative Survey reports on a new regulation. If this regulation becomes law, India will speed up the work of the CBDC and ban cryptocurrencies for its citizens.
Just like China, India aims to take advantage of the technology underlying cryptocurrencies and ban crypto assets. When the details of the bill are examined, it is seen that it is aimed to accelerate the CBDC studies.
The PRS announced that this arrangement could catch up with the 19 July Monsoon session. Of course, what a coincidence, Grayscale will seriously unlock GBTC on the same day. If you have noticed, such negative news flows like rain on the days when Grayscale will release GBTCs.
Influx of Indians to Crypto is Worrying the Government
Citizens of India show intense interest in crypto assets. The government, on the other hand, is worried that this interest will increase further and faster money outflows from the country. As announced by CNBC-TV18, Indians’ crypto assets are increasing rapidly, which was $923 million in April 2020. According to the data in May of this year, it is seen that the investment size has reached 6.6 billion dollars with an increase of 615%.
Finance Minister Nirmala Sitharaman said that the opinions of all stakeholders were taken for the new bill and it will be enacted soon. Sitharaman had previously said that they would adopt a more balanced stance.
The last statement brings to mind two possibilities regarding this ban. First, India will ban its citizens from acquiring crypto assets until it completes cryptocurrency regulations and will release it once regulations are complete. The second possibility is that with this bill, CBDC studies will accelerate and the digital local currency will be used rapidly. Crypto acquisition will continue to be restricted to restrict the outflow of money from the country. It would be a serious surprise for such an event to occur as India recently announced its cryptocurrency tax plan.
Of course, this news, announced by the PRS Legislative Survey, may not be as bad as it seems. We will see what the details are only in the monsoon session (if it catches up).