Crypto Prices Crash After Government Announces Ban On Private Crypto Coins

Cryptocurrency of the future aims to regulate India’s digital currency

Hours after the government announced it would propose a cryptocurrency bill to ban all private cryptocurrencies in the country during the winter session of Congress, all cryptocurrency prices fell by more than 15%.

At 23:45 on November 23, all major cryptocurrencies were down by more than about 15%, Bitcoin by about 17%, Ethereum by 15% and Tether by almost 18%.

Cryptocurrencies and regulations in the Official Digital Currency Act 2021 aim to provide a facilitation framework for the creation of an official digital currency issued by the Reserve Bank of India (RBI).

The bill aims to ban all private cryptocurrencies in the country, but allows certain exceptions to encourage the core technology and its use.

The cryptocurrency bill to regulate digital currencies will be presented to Congress during the winter session starting November 29. According to the government’s statement today, this bill is one of a total of 26 bills registered for implementation. ..

In the first parliamentary panel discussion on cryptocurrencies last week, a consensus was reached that cryptocurrencies in India cannot be stopped, but must be regulated.

Jayant Sinha of BJP chaired the Standing Committee of the Finance Council, which met with representatives from Crypto Exchange, Blockchain and Crypto Assets Council (BACC), industry associations and other stakeholders on November 16.

Prime Minister Narendra Modi also chaired a high-level meeting with various ministries and officials from the Reserve Bank of India (RBI) on the matter. Prime Minister Modi urged democracies to work together in regulating failed private cryptocurrencies that could turn into the “wrong hands”.

In his speech during a dialogue in Sydney last Thursday, it was important for Prime Minister Modi to reiterate that digital currencies should not be used illegally as they can harm the younger generation. On the phone.

The RBI does not accept cryptocurrencies and has raised concerns about the potential risks to macroeconomic and financial stability and capital regulation.

The Securities and Exchange Commission of India (SEBI) has also raised concerns about the growth of unregulated cryptocurrencies in India, amid risky individual investors.

Last week, RBI Governor Shaktikanta Das said India needs to discuss cryptocurrencies more closely. “When the central bank says there are serious concerns about macroeconomic and financial stability, there is a much deeper problem. These problems are serious and known to the public. No discussions have been monitored,” said Das.

Bitcoin fell 16.91 percent to 3876,950 rupees, while ether fell 14.58 percent to 2,892,897 rupees.