Regulations in Private Cryptos: Indian Government

There were rumors heard on Tuesday that Centre could possibly pass a bill in winter session of parliament regarding ban on private crypto currencies barring some exceptions. Crypto currency pose a serious concern to macro economic and financial stability and close to around 10 crore Indians have invested in crypto currencies. The definition of private crypto currencies have not been exactly clarified by the government yet but the rumors of ban led to crash in crypto markets. All major crypto currencies saw a fall of around 15%, with bitcoin down over 17%, Ethereum falling close to around 15% and Tether down by almost 18%. After the news of regulation, not ban came out the markets seem to be stabilising a bit. Earlier, a concern was raised as it was noticed that the unregulated crypto markets could be used for money laundering and terror financing.  The Reserve Bank of India (RBI) also put a circular regarding ban on crypto in 2018 saying it has some serious privacy concerns. That ban was lifted in 2020 by supreme court and now in 2021 again there are regulations being brought in crypto currencies. Recently, there have been a rise in advertising of crypto currencies promising easy and high return on Investment (ROI) and misleading the young investors. Private crypto currencies have gained popularity this year, but government has been skeptical about it since the past. Many countries have banned private crypto currencies. The Indian government also says that RBI is working to launch its own digital currency. We can expect a change in Digital Indian currency very soon.