India to consider allowing crypto trading for certain investors

The discussion comes as officials race to finalize a bill Prime Minister Narendra Modi’s government wants to table in Parliament in a session starting November 29. The law may set a minimum amount for investment in digital currencies, while prohibiting their use as legal tender. People, he said, asked not to be identified as no final decision has been taken.

Policymakers shrugged themselves off by posting details of the bill on parliament’s website late Tuesday, saying the bill would “enforce all private cryptocurrencies, with a few exceptions, to promote the underlying technology of the cryptocurrency and its uses.” tries to ban.

Uncertainty triggered a selloff in cryptocurrencies including Shiba Inu and Dogecoin on Wednesday, which were down more than 20% in trading on the WazirX platform, one of India’s leading cryptocurrency exchanges. They were little affected by trading platforms like Binance or Kraken.

A finance ministry spokesperson could not be immediately reached for comment.

The Reserve Bank of India wants a complete ban on digital currencies as the central bank feels it could affect the country’s macroeconomic and financial stability. While the government is considering taxing cryptocurrency gains in the next budget, Governor Shaktikanta Das said last week that the country needs a very in-depth discussion on the issue.

People said the Prime Minister’s Office is actively considering the issue and after finalizing the subject matter of the bill, it will be taken to the cabinet for approval.

Earlier this month, Modi held a meeting on cryptocurrencies, following which officials said that India will not allow unregulated crypto markets to become a way for money laundering and terror financing. Later, in a speech last week, he urged democracies to cooperate in regulating private virtual currencies, which could put them in the “wrong hands”.