Cryptocurrencies, including Bitcoin, were banned in the country. But that was a detour. This time the center is moving towards banning cryptocurrency by law. If the transaction of Bitcoin is proved, the section of criminal offense is also being added in this bill. And as soon as this news came out, the price of Bitcoin fell from the record height.
Bitcoin hit a high of 61781 on Saturday as new financial packages and immunization efforts intensified in the United States. But on Monday it fell more than 5 percent to 55865. However, some cryptocurrency experts see this fall as temporary. According to experts, the world's third-largest economy, such as India, is working to ban bitcoin altogether and to make transactions a criminal offense. It has affected the whole world market.
In July 2019, the Reserve Bank of India stopped all cryptocurrency transactions in India, including Bitcoin. The RBI had sent a guideline to commercial banks stating that no bank can transfer money to any app that buys or sells cryptocurrencies. As a result, although cryptocurrency is not directly banned, its transactions are stopped. This time, the government has started the process of bringing a bill to stop cryptocurrency in a permanent way, according to an official source. Reuters quoted a senior official as saying that a bill was being prepared to prosecute anyone found to be involved in buying, selling, trading or mining bitcoin. The official hoped that the bill would be ready by January. After that, if it is presented in the parliament and passed, it will become law.
At the time of the ban in 2019, the Reserve Bank had said that India was considering creating its own cryptocurrency. That process has gone much further, according to multiple sources in the central bank. However, some experts fear that the price of Bitcoin has risen by about 40 percent in the last one year. The prices of other cryptocurrencies have also risen at almost the same pace. But a large section of experts are skeptical about how successful India's own cryptocurrency will be in that competition and how much investors can rely on it.