The Indian government is taking steps to regulate cryptocurrency. As a result, India’s government is prepared to enact a new crypto bill that will control all private digital assets in the country.
To do this, the proposed measure will be introduced to parliament during the Winter Session, which begins on November 29. The bill is called the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ to distinguish it from others.
As previously stated, the new bill aims to outlaw all private cryptos. This indicates that only non-private cryptos will likely be permitted to operate in India. However, the government’s understanding and definition of private cryptocurrencies remain a mystery as of today.
Meanwhile, big cryptos such as Bitcoin (BTC), Ethereum (ETH), and others are open to the public, but it’s unclear whether the measure will regulate them as well. While crypto traders mull over the issue, WaZirX CEO Nischal Shetty has given his thoughts along with a quick explanation of public crypto.
It isn’t easy to understand what the government means when it talks about private cryptocurrencies. Bitcoin, Ether, and other public cryptos are constructed on public blockchains and have unique applications. They’re required to execute smart contracts and write to the distributed ledger on which they’re based. Fees on the Bitcoin and Ethereum Blockchains cannot be paid in INR or USDT.
In addition to the bill, India intends to develop a proper framework for the Reserve Bank of India’s yet-to-be-issued legal digital currency.