The bill named ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ will be introduced in the Parliament for consideration and passing by the government.
“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,” the bulletin said.
The government’s move to pass a bill related to cryptocurrencies comes amidst rising participation of Indian retail investors in cryptocurrency trading in the country.
“Our trading volumes grew over 1,000 per cent last year. User sign-ups grew four to five times. The number of new people signing up almost doubled every two-to-three months,” Nischal Shetty, founder of cryptocurrency exchange Wazir X had told ETMarkets.com in a
recent interview.
Cryptocurrency trading has seen a sharp revival as the prices of the Bitcoin soared over 700 per cent from April along with other cryptocurrencies that have risen even more.
In March 2020, the Supreme Court had quashed a Reserve Bank of India ban on cryptocurrency in India through use of the banking system to make transactions.
