The representations of the cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on the motherboard of the PC in this illustration taken on June 29, 2021. REUTERS / Dado Ruvic / Illustration
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MUMBAI, Nov.23 (Reuters) - India seeks to ban most private cryptocurrencies when it introduces a new bill to regulate virtual currencies at the winter session of Parliament, the government said Tuesday night.
The government will allow only certain cryptocurrencies to promote the underlying technology and its uses, according to a legislative agenda for the winter session that begins later this month.
Through the Official Digital Currency Regulation and Cryptocurrency Bill of 2021, India is also looking to create a framework for the official digital currency to be issued by the Reserve Bank of India.
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The central bank has expressed "serious concerns" about private cryptocurrencies and is set to launch its own digital currency in December.
Bitcoin, the world's largest cryptocurrency, is hovering around $ 60,000 and its price has more than doubled since the beginning of this year, attracting hordes of local investors.
No official data is available, but industry estimates suggest that there are between 15 and 20 million cryptocurrency investors in India, with a total cryptocurrency holding of around 400 billion rupees ($ 5.39 billion).
Earlier this year, the Indian government considered criminalizing the possession, issuance, mining, trading, and transfer of crypto assets, but no bill was introduced. read more
Since then, the government has slightly changed its stance and is now seeking to discourage cryptocurrency trading by imposing heavy capital gains and other taxes, two sources told Reuters this month.
But a senior government official told Reuters the plan is to ultimately ban private crypto assets while paving the way for a new central bank digital currency (CBDC).
Prime Minister Narendra Modi chaired a meeting to discuss the future of cryptocurrencies amid concerns that unregulated crypto markets could become avenues for money laundering and terrorist financing, sources told Reuters separately. read more
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Report by Aftab Ahmed and Nupur Anand; Editing by Peter Graff and Paul Simao
Our Standards: The Thomson Reuters Trust Principles.
