After a few tough days in India for the digital currency owners, the government has indicated a bill against them. The upcoming session in the next week will soon have a bill in the Parliament that will regulate all the private digital currencies in India. The said regulatory bill introduced this year will now frame an action plan in the form of law for the digital currency in India. As per the RBI notification, the bill has plans to ban the different private digital currencies in the country. However, it will give people certain exceptions when promoting certain underlying technologies found in the nation and their applications. Promptly speaking, we have different prices crashing on the local exchange for all the major digital coins, particularly the two biggies – ETH and BTC. These seemed to crash by around 15% over the Indian currency. You can even explore this subject of Private Cryptocurrencies and many others like what is the e – connection?
Understanding the Private Cryptocurrencies and Digital Currencies
The local digital currency market in India has attracted young investors in a big way. All thanks to lucrative ads claiming for quicker and higher returns. The fact is India has become the only biggest market for digital currency, with more than 100 Million investors in it. They have invested more than 10 Billion USD so far, claims the reports. However, with a specific government draft, one can find things unavailable in the media, and loads of things are left behind for your interpretation, ultimately impacting digital currency investment. The bill claims that it will prevent the different kinds of private digital currencies in the market, and it does not go with the trend. Private digital currency definition has something else to narrate and hide at the same time when we reveal the transactional details in the public domain.
The two digital currencies that remain the most-awaited and highly-priced include the BTC and ETH. Both the coins work on Blockchain technologies, and thus tracking the transactions is possible when we see some amount of anonymity to the owners. On the contrary, several other digital currencies hide the various transactional details while offering quicker privacy. However, as per the CoinCrunch CEO, the Indian government seems to be doing something different, which is not expected. On the contrary, private digital coins are different entities and should be dealt with differently. When the government is acting, anything that becomes public; however, things coming from outside becomes private for them.
The Impact on Investors in the future
With the bill being tabled in the coming few days, we see an uncertainty that seems to loom in a big way. We see a wave of investors now getting under the digital currency trade, and one can expect some panic kind of situation as far as investment is concerned, claimed the local exchange experts. It will further hamper the local exchanges in a big way. Currently, we find India to have nothing like a ban or regulation on digital currency; however, this has brought some impulsive kind of relationship with it. One can find the government raising too many concerns about corrupting the practices and other things like funding issues. As per the circular by the RBI in 2018, people were asked to watch out while dealing with different digital currencies till the Supreme Court came out with an open discussion in 2020. Later in 2021, the FM of the nation came up with her innovative stance, stating that they want to create a window for the investors dealing in digital currency.
The Outcome of the Bill- Private Cryptocurrencies
With such a stance coming from the FM of the Indian government, it would be interesting to see the result of the bill. The kind of attraction and interest the bill seemed to have come as a hopeless act for the younger generation. It is evident how many people have invested in this domain, and they had hoped. However, with the said bill coming soon this month-end, it will hamper the hopes of many. As per experts, the outcome of the bill can be gauged when it comes into effect. However, the government with the bill has its justifications. They are calling it a watchdog kind of thing that would keep an eye over the investors. However, if you look at the investors’ point of view, they are likely to be hampered a lot.