Cryptocurrency allowed to flourish with exceptions, legal framework for regulation to be formalized

A bundle of speculations is swirling around the atmosphere right from the moment, news about the scheduled tabling of a bill on the cryptocurrency has come out. The winter session of parliament is to be commenced from 29 November. Among the bills listed to be deliberated on, in the session, is the bill titled” The Cryptocurrency and Regulation of Official Digital Currency,2021”. The said is the bill which is likely to decide the fate of 20 million crypto investors in India.

In an earlier meeting of the Parliamentary Standing Committee on Finances, a group of industry experts reached the consensus that crypto-currency in indeed the future and technology has to be leveraged but the regulation of the realm is imperative. Especially when everyday newspapers are flashing big headlines promising hefty returns on cryptocurrency investments, customer interest needs to be protected. And, this has been realized as a major concern for the policy makers as well.

Prime Minister Narendra Modi, also in his virtual address at an important cybersecurity forum “Sydney Dialogue” underlined the importance of regulating the crypto sphere. He called out on the world to work in alliance to prevent the possible destructive usages of this framework.

RBI is purportedly said to be working on a facilitative platform that will operationalize an official digital currency. The frameworks for regulation of the existing cryptocurrencies (or their possible repeal) are to be formulated in the coming winter session. The rumour is that all private cryptocurrencies are to be banned with the governments’ official digital currency monopolising the crypto market.

In the light of the recent news and above developments, market for cryptocurrency has plunged drastically with major names like Bitcoin, Ethereum, Ether witnessing a dump in their market price. However, trustworthy official sources have assured that whatever happens, government will make sure to provide the investors with a sufficient window to exit the market.