June 15, 2021

India prepares to legalize bitcoin and ban ICO tokens

India prepares to legalize bitcoin and ban ICO tokens

On January 29, the Indian government presented a formal digital currency bill that will lay down the basis for creating an official digital currency,to be issued by the Reserve Bank of India (RBI). Also, the bill introduces a ban on all types of private cryptocurrencies and will allow the existence of those that are necessary to promote the underlying technology.

The regulation of cryptocurrency in India has long beena point of controversy, as RBI has taken stringent measures on numerous occasions, including restricting the purchase of cryptocurrency through bank accounts. It was later canceled.

Over time, Bitcoin and the crypto market in general have made a huge leap forward in terms of institutional adoption, especially in 2020-2021.

India prepares to legalize bitcoin and ban ICO tokens

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Законопроект под названием «Законопроект о cryptocurrency and regulation of the official digital currency for 2021 "presented the House of Parliament of India. Primarily, the bill aims to create an official digital currency and prohibits any other private cryptocurrencies other than those required to promote blockchain technology.

It follows from the document that in addition to the official digital currency only major public cryptocurrencies like bitcoin will be allowed in Indiawhile cryptocurrencies based on ICOs, as well as those owned by private firms such as XRP and IOTA, will lose their positions in the country's market.

The positive point of this document is the regulation of decentralized cryptocurrencies, the negative one is that it closes the doors to private digital assets.

India prepares to legalize bitcoin and ban ICO tokens

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