The questions posed from users across India included “studying the Bill for potential repercussions; which cryptocurrency is stated in the ban; network-based currencies like Ethereum, MATIC, NEAR, and others will be allowed?; Investors may face tax burden and penalties.”
These crypto-focused Telegram networks were flooded with fears from cryptocurrency users last evening after a government notice said that the much-awaited Cryptocurrency Bill had been proposed in the Winter Session of Parliament, starting November 29. As investors and crypto firms await clarification, nothing is known about the finalized Bill’s contents. Following the government’s announcement, consumers began dumping their crypto assets, resulting in carnage on cryptocurrency exchanges. Bitcoin has fallen over 17%, Ethereum dropped over 15%, and Tether was down at least 18%. “The country backs cryptocurrency for its mechanism. The same was said in the February 2021 statement.”
However, the industry has had various reactions to the unmodified phrasing. On the one hand, it may be a copy-paste job, but there will be no industry if the Bill truly tries to abolish private cryptocurrencies. “Although the Bill looks the same as it was in February 2021, a few notable instances have occurred since January,” the Parliamentary convened in a public hearing. Then our Prime Minister Narendra Modi stepped forward and advocated for crypto rules in India,” said Nischal Shetty, founder of crypto exchange WazirX.
“All democratic governments must act together to ensure that (Bitcoin) does not fall into the wrong hands and harms our children,” Prime Minister Modi remarked only days before the final regulation was published. According to Bill’s interpretation, the market is most apprehensive about ‘private cryptocurrencies,’ likely forbidden. The widespread consensus is that private cryptocurrencies refer to any currency that the government did not provide, including all prominent names such as Bitcoin, Ethereum, Dogecoin, and others. Still, the government has yet to define the term.
While the industry had issues due to ambiguous rules, it appears to have acquired confidence when the Parliamentary Standing Committee on Finance summoned industry leaders to review their methods of operation on November 15. Moreover, growing investor interest and tremendous progress during the last year fuelled expectations that the Bill will be favorable to the market. In India, about two crore people invest in cryptocurrencies, as per industry sources.
“This time, we have a greater context than last time the Bill was presented.” “This time, we’re more sure,” said Unocoin CEO and co-founder Sathvik Vishwanath. “Word choice by itself does not express all, and therefore we must keep a keen watch on the Bill to fully grasp its implications.” Deceitful marketing has been cited as a significant issue at the discussion between the panel and the market authority.” They requested written responses from industry executives on how cryptocurrencies could benefit India. As per the statement published by the Lok Sabha, the Bill would be addressed with 26 other matters during the winter session of Parliament.