Will India ban crypto? The plans explained and how banning cryptocurrency could affect Bitcoin price

   2021-11-24 10:11

The Indian Government is continuing its effort to ban cryptocurrencies, and start its own central bank digital currency.

On Tuesday it introduced a draft bill, the Cryptocurrency and Regulation of Official Digital Currency Bill 2021, which will be considered at parliament’s winter session.



If it passes it could prohibit people mining, holding, selling, transferring or using private cryptocurrencies like Bitcoin.

The announcement of the bill sent crypto prices crashing on Indian exchanges, with Bitcoin falling by 13 per cent.

However, the news did not have such a large effect on global exchanges.

Here is everything you need to know about the potential ban, and what it could mean for the future of Bitcoin, Ethereum and other coins.

Is India really banning crypto?

A bulletin posted on Lok Sabha, the Indian parliament’s official website, says that under the Cryptocurrency and Regulation of Official Digital Currency Bill, the Indian Government plans to create its own digital currency.

The note adds: “The bill also seeks to prohibit all private cryptocurrencies in India.

“However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”

If the bill passes this means that all private cryptocurrencies would be banned in India.

Crypto is currently unregulated in India – as it is in the UK – but talk of regulation has been ongoing for some time.

The Reserve Bank of India (RBI) attempted to ban trading of cryptocurrencies in March 2020, but this was overturned by the country’s supreme court.

Last week, RBI governor Shaktikanta Das said the central bank has “serious concerns from the point of view of macroeconomic and financial stability”.

Prime Minister Narendra Modi added last week: “It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth.”

RBI’s own digital currency could launch as early as next year.

How would this affect the crypto market?

Nischal Shetty, founder and CEO of Indian crypto exchange WazirX, has suggested regulation could be a positive thing for the Indian market.

He said in a statement: “From a banking ban in 2018 to listing the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the parliament’s winter session. Our nation has come a long way in these three years!”

He added in a tweet: “All of us want regulation. We’ve been pushing for it from the last 1000+ days.

“Finally when regulation process has begun, why panic? We need to have faith in our law makers. There’ll be discussions and deliberations. Ultimately, innovation will win.”

The fact that news of the bill did not tank global cryptocurrency prices is a positive sign for the market.

However, crypto is notoriously volatile, and it is too early to say how big an effect a potential ban could have, given there are more than 15 million cryptocurrency holders in India.


Original Source


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin56,495 0.64 % 4.28 % 1.23 %
Ethereum4,538.8 1.08 % 4.70 % 6.31 %
Binance Coin621.88 0.44 % 4.10 % 5.15 %
Tether1.000 0.32 % 0.19 % 0.14 %
Solana230.59 0.82 % 0.56 % 12.18 %
Cardano1.710 2.08 % 6.21 % 2.77 %
XRP0.9739 0.28 % 4.34 % 5.67 %
USD Coin0.9988 0.22 % 0.44 % 0.12 %
Polkadot36.24 0.12 % 5.46 % 5.46 %
Dogecoin0.2102 0.88 % 2.97 % 3.72 %
Terra65.45 1.62 % 3.39 % 69.67 %
Avalanche112.94 3.08 % 9.81 % 2.61 %
Shiba Inu0.00004243 1.66 % 10.21 % 11.99 %
Crypto.com Coin0.7011 0.56 % 7.31 % 20.84 %
Wrapped Bitcoin56,396 0.99 % 4.13 % 1.29 %
Litecoin204.90 0.01 % 5.41 % 3.41 %
Polygon2.020 2.63 % 1.90 % 19.07 %
Binance USD0.9975 0.04 % 0.61 % 0.55 %
Algorand1.880 0.11 % 3.53 % 7.55 %
Chainlink24.76 0.70 % 7.33 % 3.31 %