Cryptocurrencies are legal in some countries, and users can buy and sell them on exchanges where their companies accept them as payment for services. Digital wallets are used to store cryptocurrencies,” said Kshitiy Purohit, lead currency and commodities specialist at CapitalVia Global Research. The cryptocurrency market is expected to be worth $2.73 billion. According to industry estimates, there are between 15 and 20 million cryptocurrency investors in the Government of India, totalling around Rs 400 billion. According to industry data, between 15 million and 20 million people in India own cryptocurrencies and their assets are around $6 billion (€5.31 billion).
There are currently no regulations or prohibitions on government use of cryptocurrencies. Meanwhile, the Reserve Bank of India has repeatedly emphasised its tough stance on cryptocurrencies, saying they pose a severe threat to its macroeconomic and financial stability. Indian Prime Minister Narendra Modi said that cryptocurrencies could “ruin our youth”. Like others, the country’s central bank has repeatedly warned that cryptocurrencies could cause “serious macroeconomic and financial stability problems.”
Indian Prime Minister Narendra Modi introduced the “Regulation of Cryptocurrencies and Official Digital Currency Act,” which would ban cryptocurrencies across the board. The Indian government is preparing to ban private cryptocurrencies and allow the country’s central bank to launch an official digital currency. The upcoming regulatory bill aims to ban all “private cryptocurrencies” by the government.
With the new cryptocurrency bill, India aims to ban most private cryptocurrencies and lay the groundwork for the Reserve Bank of India to issue an official digital currency. The proposed clause of the new law, which is still under discussion, would allow the ownership of cryptocurrencies as an asset and prohibit its use as a currency or payment. The account has reportedly evolved to enable the use of cryptocurrencies as an asset, but not as a currency or to make payments. In addition, the report showed that governments could propose legislation to ban cryptocurrencies penalise anyone who trades in the country or even owns such digital assets, a senior government official told Reuters.
Since then, according to Reuters, India has slightly changed the government’s stance on cryptocurrencies and is now trying to discourage crypto trading by imposing heavy capital gains and other taxes. The Supreme Court of Governments has lifted the crypto brake set by the RBI, which prevented banks and financial institutions from providing access to banking services to those involved in cryptocurrency transactions.
Despite warnings from India and details of the planned bill, many cryptocurrency investors are hopeful that they will still trade. Assuming this law passes, it would mean that the two most populous countries on the planet China and India, would have some ban on cryptocurrencies, preventing more than 3 billion people from using them. Cryptocurrency exchanges allow customers to exchange cryptocurrencies for other assets, such as regular fiat currencies or transactions between different digital currencies.