India Edges Closer to Cryptocurrency Ban

Private Coins to be Outlawed, Central Bank to Issue Official Digital Currency

The Indian government is preparing to ban private cryptocurrencies and allow the country's central bank to launch an official digital currency, according to a government source who spoke to Reuters on Wednesday, November 24, 2021. The source, who requested anonymity, said that the government is expected to introduce a bill in the winter session of parliament that would criminalize the possession, mining, and trading of cryptocurrencies. The bill is likely to be met with resistance from the cryptocurrency industry, which has been growing rapidly in India in recent years.

Cryptocurrency Ban: A Complex Issue

The Indian government's move to ban cryptocurrencies is part of a wider crackdown on the industry by governments around the world. China has already banned cryptocurrency trading and mining, and other countries, such as South Korea and Japan, have implemented strict regulations on the industry. The Indian government has cited concerns about money laundering, terrorist financing, and market volatility as reasons for its decision to ban cryptocurrencies. However, the move is likely to be controversial, as there is a growing body of evidence that cryptocurrencies can be used for legitimate purposes, such as remittances and cross-border payments.