India to Regulate Private Cryptos through a New Bill On Nov 29

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  • The Indian Government is preparing to regulate private cryptos with a new bill on November 29.
  • Dubbed as ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’.

Indian authorities are on the move to ignite crypto regulation. Leading to this, the government of India is preparing to impose a new and unfriendly crypto bill to regulate all private digital assets in the country.

To do this, the proposed bill will be presented to the parliament in the Winter session which has been scheduled to take effect on November 29. To easily identify the bill among other existing ones, it is dubbed the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’.

As said earlier, the new bill seeks to ban all cryptos that are deemed private. This means that the government will probably allow only the non-private cryptos to operate in India. But as of today, it is very unclear how the government understands or defines private cryptocurrencies.

Meanwhile, major cryptos like Bitcoin (BTC), Ethereum (ETH), and others are public cryptos, but we don’t know yet if the bill will regulate them as well. As crypto traders are contemplating on this matter, WaZirX CEO, Nischal Shetty has expressed his opinion with a brief explanation about public crypto.

It is hard to comprehend what the government means by private cryptocurrencies. Bitcoin, Ether, etc. are public crypto built on public blockchains and have their specific use cases. They are needed to run smart contracts and write to the distributed ledger that they’re built on top of. People cannot use INR or USDT to pay for fees on the Bitcoin or Ethereum Blockchain.

Furthermore, alongside the bill, India is planning to create a suitable framework for its yet-to-be-issued official digital currency by the Reserve Bank of India.