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After Cabinet approval a new Crypto bill to be introduced in Parliament

In India, the Cryptocurrency business is waiting for good legislation that would enable investment and trading in Crypto assets with specific constraints. 

During the current Winter Session, the Government will propose the long-awaited ‘The Cryptocurrency and Regulation of Official Digital Currency Bill 2021’ in Parliament. The Bill might be introduced within the next several days.

It is not on the Lok Sabha’s updated ‘List of Business’ for November 30, 2021. Meanwhile, Finance Minister Nirmala Sitharaman stated in Rajya Sabha on Tuesday (November 30) that a new crypto law will be submitted in the House following Cabinet clearance.

The crypto sector is waiting for favorable legislation that would allow it to invest and trade in cryptocurrency with certain constraints. Until recently, the noise around the Crypto Bill has been both favorable and bad. 

The Crypto Bill is one of many legislation scheduled to be tabled in Parliament during the Winter Session. Confusion and terror seized India’s cryptocurrency industry last week, as the wordings of the description of cryptocurrency bill on the list were the same as last year. 

It reiterated the government’s determination to prohibit private cryptocurrencies. However, there is still disagreement over what the government means when it refers to private cryptocurrencies.

Cryptocurrency

To get the complete picture, we’ll have to wait until the Cryptocurrency Bill 2021 becomes available.

According to Edul Patel, CEO and Co-Founder of crypto investing platform Mudrex, there are already over 11,000 cryptocurrencies traded on exchanges. There is confusion about what the government intends by private cryptocurrency. 

Bitcoin, Ether, and other cryptocurrencies are available on both controlled and decentralized markets. However, none of these cryptocurrencies are produced by governments, but rather by developers or businesses.

“The term “private cryptocurrencies” is intriguing since there has been talking about governments creating their own coin. CBDCs, or Central Bank Digital Currencies, are the name given to these cryptocurrencies.

It is possible that these CBDCs will be categorized as public cryptocurrencies, while the rest would be classified as private cryptocurrencies. “It will be fascinating to see what falls under the purview of private cryptocurrency,” Patel told FE Online.

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