Uncertainty about cryptographic regulations due to sales on Wednesday (representative)
According to insiders, India is considering a proposal to treat cryptocurrencies as financial assets while protecting retail investors.
Discussions will take place as authorities compete to finalize a bill that the Center will present to Congress at a session starting November 29. People are demanding that the law establish minimum investments in digital currencies while prohibiting the use of fiat currencies. It was found that a final decision had not yet been made.
When politicians published a description of the bill on the Congress website late Tuesday, the bills were all private cryptocurrencies, with the exception of “special exceptions for promoting cryptocurrencies and the underlying technology.” I said I’d try to ban it and leave room for a little shaking.
The uncertainty caused cryptocurrencies, including Shiba Inu and Dogecoin, to sell out on Wednesday. They are temporarily down more than 20% when trading on the WazirX platform, one of the major crypto exchanges in India. The impact on trading platforms like Binance and Kraken is much less.
A spokesman for the Treasury Department was not immediately available for comment.
The Reserve Bank of India (RBI) wants a complete ban on digital currencies, believing that the central bank could undermine the country’s macroeconomic and financial stability. The government is considering taxing cryptocurrency profits in the next budget, but RBI Governor Shaktikanta Das said last week that more in-depth discussions were needed.
People say the prime minister’s office is actively considering the matter and will get cabinet approval once the bill is finalized.
Earlier this month, Prime Minister Modi held a conference on cryptocurrencies. Authorities later said they would not allow India to use the unregulated crypto market as a vehicle for money laundering and terrorist financing.
Then, in a speech last week, he called on democracies to work together to regulate failed private cryptocurrencies that could turn into the “wrong hands”.