Click to Expand & Play

The cryptocurrency market in India remains skeptical.

There has been a stir among crypto investors and participants of the crypto ecosystem since the announcement of the introduction of the Cryptocurrency Bill by the Central Government on Tuesday.

In its notification on the website of the Lok Sabha, the government has said that it will bring a cryptocurrency bill in this winter session of Parliament, under which all private cryptocurrencies will be banned in the country with few exceptions.

At the same time, digital currency will be issued in this direction by the Reserve Bank of India.

The market was stunned by this news.

But it is possible that this bill may not be as dangerous for cryptocurrencies as it seemed at first sight. 

The rest of the information regarding this bill is not very clear, so crypto investors are still hoping that some provision will be found to sustain their investment in this thriving sector in India.

We are looking at some important questions regarding the status of cryptocurrencies and their future prospects.

How big is the cryptocurrency market in India?

Last year, after the Supreme Court lifted the RBI ban on cryptocurrencies, the cryptocurrency market has grown in an unprecedented manner in the country in the last more than a year.

According to research by Chainalysis, the market has grown at a rate of 600 percent in the last 12 months.

According to the Blockchain and Crypto Assets Council (BACC), Asia's third largest economy, India has between 15 million and 20 million investors who have invested in crypto. 

Also read: Cryptocurrency Bill will come to India to regulate crypto, not ban it - Claims Industry Sources

At the same time, the advertising market is full of such ads, in which Bollywood and cricket celebrities are promoting cryptocurrencies, crypto exchanges and NFTs (non-fungible tokens).

What has the government said?

Prime Minister Narendra Modi said at an event last week that cryptocurrencies could "fall into the wrong hands and ruin our youth."

At the same time, RBI has also described it as 'raising serious concern for macroeconomic and financial stability'.

Some media reports say that through this bill, the government will try to regulate the crypto sector to some extent, while provisions for tax deduction can also be imposed in it.

However, perhaps there will not be such a complete ban in India, as is being imposed in the neighboring country of China.

Also read: There was uproar in social media on the news of crypto ban, the shop was still frozen

What do we know about this bill so far?

In a bulletin of Parliament on Tuesday, a cryptocurrency bill named 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' was listed for the winter session.

In this notification, the government has said that it wants to prepare a framework for issuing an official cryptocurrency under the Central Bank Reserve Bank of India.

This provision will be brought under this bill, which will ban all private cryptocurrencies.

However, some exceptions will be made to promote its technology and use.

What are the expectations and speculations?

Crypto investors are hoping that the government will not only give relief on some exceptions in cryptocurrencies, but also show some leniency in the word 'private' when it comes to the ban of private cryptocurrencies.

This would allow many cryptocurrencies to remain free.

For example, well-known cryptocurrencies like Bitcoin and Ethereum work on public blockchain networks.

Their transactions can be traced.

But there are other cryptocurrencies, such as Monero or Dash, that operate on a public blockchain but do not allow transaction data to be made public to maintain user privacy.

In such a situation, it may be that the eyes of the government should be on cryptocurrencies with such character.

ALSO READ: Cryptocurrency Industry Appeals To Government To Adopt All Inspections Approach

Will the ban be effective or not?

Cryptocurrencies are entirely a thing of the virtual world.

Yes, now its value has been determined in comparison to the traditional currency.

There is a fixed amount, which has a value, but in the end, it is just data, it is a number.

These are the codes on the coin or token, whose value is nullified, then nothing will be left.

Transferring them from one wallet to another is the same as sending a file from one computer to another.

Yes, the ones that will have an impact are crypto exchanges.

Investors invest their money on crypto exchange, trading takes place here.

In such a situation, crypto exchanges will come under the scrutiny of the government. 


It may also happen that the government may fix a minimum amount for investing in digital currency.

A report by Bloomberg News has speculated that the government may ban their use as a legal tender.


Ashish Singhal, founder of crypto exchange platform CoinSwitch Kuber and co-chairman of BACC, said that 'obviously the words (of the announcement of the bill) were intimidating and due to this there was a panic in the market.

That's why I urge crypto-asset investors to act calmly now.



(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)