The Indian government plans to introduce legislation that would outlaw all private cryptocurrencies while also establishing a framework to regulate digital currency issued by the country’s central bank.
The Cryptocurrency and Regulation of Official Digital Currency Bill has been scheduled for introduction in the parliamentary session on November 29, according to the official agenda released by the state-run broadcasting service Prasar Bharati.
The bill aims to establish a framework that will facilitate the creation of official digital currency to be issued by the Reserve Bank of India.
It also seeks to outlaw all private cryptocurrencies in India, with some exceptions to promote cryptocurrency’s underlying technology.
In response to the news, all major digital currencies experienced a 15% drop in overnight trading on Indian crypto exchanges.
According to NDTV, Bitcoin was down 18.53 percent, Ethereum was down 15.58 percent, and Tether was down 18.29 percent.
Last week, Prime Minister Narendra Modi urged democracies to work together on cryptocurrency, saying it was critical to prevent currencies like Bitcoin from falling into the hands of criminals.
The Indian government is concerned that cryptocurrencies may be used to fund terrorism and money laundering.
Officials are also skeptical of virtual currencies, citing their volatility and making false promises to investors.