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Is it true that bitcoin will get banned in India? – A quick take away from India’s new regulations on bitcoin!

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India is one of the fastest rising markets in terms of bitcoin trading. You need to know that now the central bank of India RBI is all clear on the thought that it wants to ban private digital currencies. They are planning to launch their official digital currency very soon. On the other hand, the government is entirely in favor of making the exception in promoting the bitcoin blockchain technology. The prime minister of India, Narendra Modi, is looking forward to making its final decision on bitcoin and other cryptocurrencies in the last parliament session of 2021. For more details about bitcoin, you can access this https://bitcoin-prime.app/ .

Get to know how significant bitcoin and altcoins are in the country, India!

You need to know that India is one of the most significant regions expanding rapidly in adopting bitcoin and other digital currencies. According to a report from a cryptanalysis firm named Chainalysis, from July 2020 to June 2021, the Indian market grew more for approximately 641 percent. You will be glad to know that central and southern Asia stood fourth in the most significant cryptocurrency market. There were over 572.5 billion dollars of value of the transaction in this period. The exciting thing is 42 per cent of the transactions from the 572.5 billion dollars were sent from Indian based bitcoin addresses. It shows that India is now a more mature market for digital currencies.

What rules do the government intend to implement?

When it comes to digital currencies, India has a very on and off relationship with cryptocurrency. In the year 2018, the nation put an effective ban on digital currency transactions but later in March 2020, the supreme court of India crashed down the limits. The demand for strict rules regarding bitcoin started to rise when the government started to think that the unregulated environment of bitcoin and other digital currency could attract more people to invest in these volatile assets. It will leave the average household savers more prone to lose. There is news that the government is setting up a bill for bitcoin and other digital currencies.

What are the concerns of the Indian government?

According to the Reserve bank of India, digital currencies are posing some serious threats for the macroeconomics and the monetary stability of the country. You should know that the currency of India is convertible in only a partial way which means it gives more power to the regulator to get the insights and have power on who can access the markets of this nation. When it comes to cryptocurrency, they are designed to be traded with full-on freedom and in anonymous ways, which is denying the authorities’ oversight. Due to the increased use of bitcoin in the country, the cases of money laundering and terrorism financing have significantly increased.

What will be in the bill?

There is not much data available on what this bill is going to propose. However, as per a brief description on the parliament’s website, the bill will prohibit all private digital currency in India. However, the country will allow some specific exceptions for promoting the prevailing technology of bitcoin and its uses. The government of India is looking forward to treating cryptocurrencies as a financial asset which can lead to stipulating a minimum amount when it comes to investing. At the same time, it will be banning the use of digital currency as a legal tender and this year, getting the bill passed needs to be finalized in the draft form and then cleared by the cabinet before the 23rd of December. Moreover, the Modi government is also intending to help the central bank of India for creating its official digital currency because various other countries are also doing so, such as China.

The ending lines!

Earlier, there were no rules and regulations for the use of bitcoin and digital currencies in India. But now, it seems like the government of India is all set to create some new rules and regulations for the use of digital currencies, which can affect the traders and investors of India.

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