According to the new bill of the Indian government, all cryptocurrencies not issued by the state will be banned.
If the bill, which was enacted as the "Cryptocurrency and the Official Digital Currency Act," goes into law, it is thought that it will deal a huge blow to the booming crypto industry in the country.
A court in India declared cryptocurrencies to be legal on the grounds that there was no prohibition law. Thereupon, India-based cryptocurrency exchanges and businesses gained legitimacy and had a huge demand boom.
In his court decision, he ordered the Central Bank of India to withdraw its measures that suppress and restrict cryptocurrencies until there is a legal ban on this issue.
The main reason for the enactment of this law seems to be to ensure the dissemination and monopolization of the official digital currency to be issued by the Central Bank of India. It covers the forbidden Bitcoin and private cryptocurrencies. The purpose of the bill is explained with the following statements;
The aim of this bill is to create a facilitating framework for the creation of the official digital currency to be issued by the Central Bank of India. The bill also seeks to ban all private cryptocurrencies in India; however, it does allow certain exceptions to support the technology underlying the cryptocurrency and its uses.
