India Announces Bitcoin Ban and Plans for Digital Rupee

The iGaming industry is rapidly expanding with regulatory bodies across the world shaping up to improve standards and increase safety.  

For 2021, safety and convenience will be a primary trend within the industry which includes more dedication to cryptocurrency.  

As the rest of the world is opening up towards the idea of cryptocurrency, India continues to lean towards tightening the reigns and banning crypto in the region.  

The most recent attempt being the move to implement a new ‘Cryptocurrency and Regulation of Official Digital Currency Bill’. 

India’s Potential Ban on Private Cryptocurrency 

The Indian government recently announced a new proposal aiming to ban all private cryptocurrencies.  

India’s legislators have moved for introduction, consideration and passing of The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.  

This proposed bill was scheduled for discussion during the next Budget Session of Parliament taking place on the 29th of January 2021.  

Should the Regulation of Official Digital Currency Bill be passed into law it will completely ban the use of all private cryptocurrency as legal tender and currency. Some exceptions will be allowed in an effort to promote the ‘underlying technology of cryptocurrency’ and how it is implemented.  

A new official digital currency will be created and issued to the Reserve Bank of India. 

Regulation Rather Than Outright Ban 

The announcement of a possible ban on cryptocurrency within the region created quite a stir. There has been no definite feedback on what will happen to cryptocurrency yet.  

However, the Indian government has hinted that it is considering moving towards the idea of regulating cryptocurrency rather than completely banning it.  

Minister Rajya Sabha said that the aim is to curb illicit cryptocurrency transactions and block their use in payments.  

Anurag Singh Thakur, the Minister of State for Finance, revealed that the government does not consider cryptocurrencies legal tender or coins. Furthermore, they will continue to take all necessary measures to eliminate the use of these crypto-assets for financing illegitimate activities or as part of the payment system in the country.  

During the question-and-answer session, Thakur also made it known that the government is currently in the process of proactively exploring blockchain technology as a means to usher in the digital economy.  

A Call for Regulation 

Industry players are already familiar with the constant drive India’s government has for banning cryptocurrency.  

With the latest proposed bill set in motion, various industry players have stepped up asking for a proper regulation instead of a blanket ban on cryptocurrencies.  

According to Jaideep Reddy, the draft bill is not just overbearing but ‘arguably unconstitutional’. Reddy elaborated stating that while the Bill could be less extreme than the draft Bill, the chances are pretty good that a ban will be placed on some forms of trading.  

Cryptocurrency is meant to be a disruptor of the traditional currencies and trading options, providing more freedom and security.  

Ultimately, 2021 has been described as a big year for the advancement of cryptocurrency around the world. India’s officials are urged to keep this in mind and instead opt for better regulation of blockchain technology, rather than finding ways to remove it.