The new crypto bill which will be introduced in the winter parliament is said to be pass and will ban all the private cryptocurrencies and its trading in India.
India is one of the fastest growing nations in terms of new crypto users with more and more people getting into the online digital currency seen making it the biggest country with most users only behind USA, Kenya, and China.
The Prime Minister is against it
Speaking at an international convention last week, the Indian Prime Minister Narendra Modi spoke out against the cryptocurrencies market and was his opinion that all the Nations need to regulate the cryptocurrencies so that it does not fall into the wrong hands and that it does not spoil the youth of the nation.
Despite the growing number of users in India, the Prime Minister of the country is not a big fan of the crypto market and his voice his opinion that it should be heavily regulated instead of the users having all the power to make the decisions.
Online trading apps like coin DCX, Wazir X and many more has seen a huge surge in users over the recent years as more and more youth look to gain financial independent by online crypto trading a rather than the conventional stock trading which has been more prevalent in India for decades.
The Reserve Bank of India tried to kill the crypto years ago.
And it comes as no surprise that the major National Bank, the reserve Bank of India sees is crypto as a threat to the nation as they have time and time again came out and voiced their opinion on multiple occasion against cryptocurrencies
They said that the cryptocurrencies where a threat to the financial stability of the country and that cryptocurrency should not exist in India because it is not associated with any banking system.
They even went out of their way and banned all the transaction of cryptocurrencies with the bank in 2018 making it impossible for many of the users to buy and sell cryptocurrencies using their Fiat money in their bank accounts.
So what does the new crypto bill include exactly?
The new crypto bill, which will be introduced in the winter parliament and set to pass will see the privately owned cryptocurrency is entirely banned from the country and the publicly owned cryptocurrencies be heavily regulated under the watchful eye of the Indian government.
Prime Minister Narendra Modi and the Indian government have given their reason for the dislike of cryptocurrencies being open to all citing that “the regulated cryptocurrencies might fall into wrong hands and can be used to launder money and for all the wrong reasons”.
The bill will also include a digital framework for the new crypto rules and the cryptocurrencies which will be regulated after the bill gets passed.
15000+ accounts banned even before the bill gets passed
The bill was enough of a headache for the Indian crypto users already, who are now worried about all the different kinds of cryptocurrencies they hold into their portfolio and whether they will be able to cash out on it before the Bill gets passed or not.
But more than 15000 accounts on online trading platforms like Wazir X and coin DC X have been closed under mysterious circumstances without the users notice and the Indian government citing it as a potential scam money scheme.
Many Indian users also are left in the dark as they do not know if they will be able to cash out on their current coins after the bill gets passed and they still do not know which coins will be legal and which will get their account banned without any prior notice like others.
So what effect will it have on Indian crypto market?
First thing first, the reserve Bank of India is taking a complete U turn and now coming out with their own digital cryptocurrency after the passing of new bill which will see them have their own coin in the crypto market.
They came out recently in July stating that they will release their own online crypto but it will be more one to one with the Fiat currency than an volatile online crypto coin.
For users who are familiar with the crypto market, they would know that this is similar to the USDT coin and is something that one would really invest in if they are looking to get profit from the crypto market.
And to answer your question…
To answer your question about The Real effect for the existing crypto users in India, this means a disaster for anyone trying to up their profit using their knowledge for the crypto market.
First and foremost, the burning of private crypto would see most of the profitable crypto coins been completely banned in India, coins which most of the Indian users opt for.
Not only banning of the private cryptocurrencies, the regulation of public cryptocurrency would also mean that it would take longer for new coins to be approved for the Indian market compared to the rest of the world.
This means that the Indian users will have really miss out on the initial profit during the first most profitable stages of a new proven coin when it enters the market, it would be almost similar to a situation where Indian users missed out on almost 400 percent of profit on dogecoin because the listing in India and the real-time updates of the price took way too long as compared to all the other nations in the world.
The slow time updates will also mean that many of the Indian users would be late to buying into the “dips” of any monetary coin and they also face repercussions if they do manage to cash out on a big payout from the crypto wallet.
Not to mention that the crypto will now be heavily taxed reducing the profit for anyone even more, and and the higher of involved will have more of an impact on any coin in India which might tamper with the prices in the Indian market.
This bill will take away the powers from the hands of crypto users which they enjoyed until recently and will put them under heavy restrictions minimizing their upmost profits.
Users will miss out on the early hype and will have to buy in at a relatively higher prices, and will also have to abide by many new rules and regulations that the Indian governments might come up with and have no say if they do manage to oppose that.
What do you think of this new Indian crypto bill? Let us know in the comments below.