India is reportedly set to propose a new bill that seeks to prohibit most private cryptocurrencies as part of the government’s move to regulate virtual currencies in the country.

This bill will, however, allow certain cryptocurrencies in order to foster their ‘underlying technology and its uses’.

The Cryptocurrency and Regulation of Official Digital Currency Bill, which is expected to be introduced in the winter session of the Parliament, also entails a framework for digital currency set to be issued by the Reserve Bank of India (RBI).

RBI, which previously voiced serious concerns about private cryptocurrencies, is expected to roll out its own digital currency next month.

The apex bank earlier argued that cryptocurrency could limit its ability to manage inflation, foreign exchange and the overall economy in addition to backing illegal activities.

In April 2018, the RBI barred financial institutions from providing services to anyone trading in virtual currencies.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Supreme Court of India ruled against the restriction last year, allowing the trading of cryptocurrencies in the country.

The government’s latest move is part of its strategy to pay the way for the new Central Bank Digital Currency (CBDC), Reuters reported citing a senior government official.

Earlier this year, the Indian government weighed criminalising the possession, issuance, mining, trading and transference of crypto assets. However, it failed to introduce a bill in Parliament.

According to industry estimates, India has 15 million to 20 million crypto investors holding crypto worth around $5.39bn (INR400bn).

In September this year, China banned all crypto transactions and services.