The Indian government is working on a bill to prohibit all private cryptocurrencies, with a few exceptions, ahead of the launch of its own digital currency offered by the reserve bank.
The bill, called Cryptocurrency & Regulation of Official Digital Currency Bill 2021” will permit “certain exceptions” to promote the underlying technology of cryptocurrency and its applications.
It will also help to create a framework for the launch of its own official digital currency to be launched by the Reserve Bank of India in December, according to reports.
Cryptocurrencies in the firing line include Bitcoin and Ethereum.
Earlier in the month, Prime Minister Narendra Modi stressed the importance for democratic nations to ensure that cryptocurrency “does not end up in the wrong hands.”
A similar ban on cryptocurrencies was issued by China earlier this year, which declared all cryptocurrency transactions as illegal. The country is also looking at launching its own “Digital RMB”, which would be issued and managed by China’s Central Bank.