India seeks to block most cryptocurrencies in new invoice, government says

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MUMBAI, Nov 23 (Reuters) – India is trying to bar most personal cryptocurrencies when it introduces a new invoice to regulate digital currencies in the winter session of Parliament, the government mentioned late on Tuesday.

The government will permit solely sure cryptocurrencies to promote the underlying know-how and its makes use of, in accordance to a legislative agenda for the winter session that’s set to begin later this month.

Through the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, India can be trying to make a framework for the official digital foreign money that will likely be issued by the Reserve Bank of India.

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The central financial institution has voiced “serious concerns” about personal cryptocurrencies and is about to launch its personal digital foreign money by December.

Bitcoin, the world’s greatest cryptocurrency, is hovering round $60,000, and its worth has greater than doubled because the begin of this 12 months, attracting hordes of native buyers.

No official information is obtainable however trade estimates counsel there are 15 million to 20 million crypto buyers in India, with whole crypto holdings of round 400 billion rupees ($5.39 billion).

Earlier this 12 months, India’s government thought-about criminalising the possession, issuance, mining, buying and selling and transference of crypto belongings, however a invoice was not launched. learn extra

Since then, the government has modified its stance barely and is now trying to discourage buying and selling in cryptocurrencies by imposing hefty capital features and different taxes, two sources informed Reuters this month.

But a senior government official informed Reuters that the plan is to ban personal crypto belongings finally whereas paving the best way for a new Central Bank Digital Currency (CBDC)

Prime Minister Narendra Modi chaired a gathering to talk about the way forward for cryptocurrencies amid considerations that unregulated crypto markets might turn into avenues for cash laundering and terror financing, sources informed Reuters individually. learn extra

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Reporting by Aftab Ahmed and Nupur Anand; Editing by Peter Graff and Paul Simao

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration

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