Centre to bring a bill to regulate cryptocurrency; regulation will not be an outright ban

The Indian government is likely to impose a complete ban on cryptocurrencies. The central government will introduce 26 new bills, including three ordinances, in the winter session of Parliament starting November 26. This is according to the agenda of the Legislature for the winter session held on Tuesday evening.

One of the most talked about bills is the cryptocurrency bill. Will Modi government ban cryptocurrency or allow trading with some restrictions? All this will be known only after the bill comes. The bill related to cryptocurrency is called 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021'.

But if sources are to be believed the regulation will not be an outright ban. Centre will move a Bill which seeks to prohibit all private cryptocurrencies in India in the Winter Session of Parliament starting November 29. This move by the Centre has led to bitcoin prices crashing to the lowest in a month.

“A regulation mechanism will be in place so that crypto is not misused. The government is concerned about the underground transactions happening against cryptocurrency — particularly its role in ‘hawala’ and terror funding,” the source said. “A strict mechanism will be in place so that law enforcement agencies can trace the origin of cryptocurrency used for illegal or anti-national work,” source added.

The government's objective is "to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India".Prime Minister Narendra Modi had earlier said that all democratic countries need to work together on cryptocurrency and ensure that it does not end up in the wrong hands.