[Asia Economy Reporter Cho Hyun-ui] The Indian government has prepared a bill to ban private cryptocurrency trading. It is expected to become the second country, after China, to implement a full-scale cryptocurrency regulation.
According to local media and foreign news on the 24th, the Indian government revealed the contents of a bill the day before, which centers on banning private cryptocurrencies and introducing an official government digital currency. This bill, which prohibits the circulation of all private cryptocurrencies such as Bitcoin and Ethereum, will be submitted to the winter session of parliament starting on the 29th.
Instead, India plans to encourage the use of an official digital currency (CBDC) issued by the central bank, the Reserve Bank of India (RBI). The CBDC is scheduled to be launched in December.
The Indian government has long been concerned that cryptocurrencies could be exploited for various crimes such as money laundering and drug trafficking. On the 18th, Indian Prime Minister Narendra Modi publicly warned about the harmfulness of cryptocurrencies, stating, "Cryptocurrencies can ruin young people."
It is estimated that over 100 million people in India hold cryptocurrencies. According to blockchain analytics firm Chainalysis, the size of India's cryptocurrency market was $6.6 billion (approximately 7.8 trillion KRW as of May), growing more than sevenfold compared to $923 million (approximately 1.1 trillion KRW) in April last year.
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