Earlier in the year, China banned Bitcoin mining and trading, causing the market to plummet. This past Tuesday (23), the Indian government revealed that it will announce a new bill that also intends to ban most cryptocurrencies and create a digital currency controlled by the country’s central bank.
Unsurprisingly, India is not happy with the cryptocurrency market: a few months ago, India’s lawmakers began discussing the risks and planning to launch a digital currency, as China also did with the renminbi.
Cryptocurrencies causing problems
Among the problems cited by lawmakers, one of the biggest is the alleged misinformation caused by digital assets, as some advertise promising big profits for investors.
According to the Indian parliamentary agenda, if approved, the new measure should only allow a few currencies and will be allowed to promote only their use and technology, with no promises about possible future profits.
The price of some cryptocurrencies dropped after the unveiling, such as Thether, the dollar’s stable digital version, which dropped to 80 cents. As revealed by Reuters, several brokers active in India began noticing withdrawals and sales after the news.
Currently, there are around 15 and 20 million cryptoactive investors in the country, representing more than 400 billion rupees (about US$5.3 billion at the current price).