The Indian government is preparing to introduce legislation to ban private cryptocurrencies.
According to an article in Les Affaires, in the eyes of Prime Minister Narendra Modi, these virtual currencies represent a risk that could “spoil our youth” if they fall into the “wrong hands.”
The text comprises banning most crypto-currencies including Bitcoin and Ethereum, except for some that will be used to develop techniques related to virtual assets. It aims to fight against their illicit use, including money laundering and drug trafficking.
The bill, which is to be introduced in Parliament in the next session, also calls for the creation of a framework for a digital currency controlled by the Indian central bank.
Indians are reportedly holding cryptocurrencies in large numbers, ranging from 15 million to 100 million people – a wide range – with a total value of billions of dollars. According to Chainalysis, a specialized firm, the market has skyrocketed by over 600% over the past 12 months.
Back in June, the Central Bank of India declared it was preparing to launch its very own digital currency before the year’s end. The bank took advantage of the occasion to voice its “serious concerns” regarding the use of private currencies, including Bitcoin, Ethereum, and others.
The bill will permit exceptions to encourage the use of the underlying blockchain technology, the parliamentary bulletin stated, with no further details. India is not the first country to legislate cryptocurrencies. China, it will be recalled, banned virtual currency transactions last September.
However, the Bitcoin price didn’t appear to be impacted by the recent announcement.
