The government has listed the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 for introduction during the winter session of the parliament, which will start on November 29. On the Lok Sabha agenda, the purpose of the bill remains unchanged from when it was earlier listed in February this year: We are discussing crypto regulation trends with our subscribers this week. Subscribe to MediaNama to attend this session. To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses. (emphasis ours) The unchanged description has caused many crypto investors in India to panic, and prices of all major cryptocurrencies have plummeted after the agenda was circulated. Developments over the past few months, however, strongly indicate that the crypto bill will not seek to ban major cryptocurrencies. What we know about India's approach to crypto regulation The internet is currently abuzz with speculation around the term 'private cryptocurrencies'. We don't know if it refers to privately-held cryptocurrencies, the use of crypto assets as currencies (i.e. payments), or just all cryptocurrencies that aren't controlled by the RBI. The government's statements and discussions with stakeholders, however, indicate that the bill is not likely to entail a blanket ban on cryptocurrencies: Permitted as an asset, not a currency: India’s crypto law will regulate cryptocurrencies as assets…
