- The Indian government will introduce a new crypto regulation bill in the upcoming parliament session.
- The bill aims to ban all private cryptocurrencies in the country.
- The Reserve Bank of India will develop its own digital currency according to the bill.
- There might be major crypto sell-offs in the region if the bill is passed.
The Indian government is set to introduce a cryptocurrency regulation bill in the winter session of the parliament, which will start on 29th November. According to the official government document, the bill will seek to ban the usage and investment of all private cryptocurrencies, excluding ‘a few exceptions’.
According to the agenda of the bill, the government will seek to only promote the official digital currency to be issued by the Reserve Bank of India. The document doesn’t provide any further clarity to the bill.
However, it’s clear that if this bill is passed, all private cryptocurrencies such as Bitcoin, Ethereum, Cardano, and others will be banned in the country. The government will look to develop and promote its own cryptocurrency through the Reserve Bank of India.
In terms of the ‘few exceptions’, the agenda states that the bill will allow the promotion of certain cryptocurrency technologies. Although no further clarification is given, this could be indicating the usage of major blockchain technologies and features such as smart contracts.
How will the new bill impact the crypto market?
If the new bill is passed in the upcoming parliament session, it will discourage the usage and marketing of cryptocurrencies in the country. It will also mean that local and international retailers in the country won’t be able to use or invest in any crypto assets.
India is the largest economic power in South Asia. Its strong regulatory stance against crypto can lead other countries in the region to follow the same path. Earlier this month, we saw that President Biden’s new crypto regulations in the US caused a significant downturn in the market. As the market is starting to climb up again, Indian’s potential crypto ban can trigger massive sell-offs in the market, causing major crypto prices to go down significantly.
The global crypto market faces a tense end of the year, as regulatory decisions around the world can decide the direction of major coins heading into 2022.
India continues to resist crypto adoption
The Indian Prime Minister Narendra Modi has been a constant sceptical of cryptocurrency. Earlier this month, the PM called upon other nations to introduce crypto regulations. PM Modi also shared concerns that the increased adoption of crypto might allow the digital currencies to end up in the wrong hands and spoil the youth.
Earlier this year, the Indian government also attempted to criminalise any form of crypto possessions, trading, or mining. However, the plan didn’t end up in the parliament for a hearing. Reports suggest that PM Modi chaired a cabinet meeting recently to share concerns about the unregulated crypto markets. His government believes that the widespread usage of crypto in India can lead to increased money laundering and terror funding.
The new German government takes a pro-crypto stand in the coalition agreement
- The European Financial Sector aims for holistic and risk-adequate supervision of the crypto business models.
- The newly elected German government said that innovation doesn’t come at the cost of affecting the stability of the traditional financial market.
The new German government has decided to take a pro-crypto stand in its coalition, a move that seeks to create a level playing field between “innovative business models” and traditional finance. The three German parties, who are looking to take the reins from December this year, have agreed to the coalition deal this week.
These three parties include left-leaning Social Democrats (SDP), the right-friendly Free Democrats (FDP), and the Green Party. The 177-page agreement published earlier this week on Wednesday, November 24, notes that the coalition seeks a new “dynamic in relation to the opportunities and risks from new financial innovations”. This includes blockchain businesses and crypto-assets. The agreement further adds:
We are making European financial market supervisory law fit for digitization and for complex group structures in order to ensure holistic and risk-adequate supervision of new business models, We need joint European supervision for the crypto sector. We oblige crypto asset service providers to consistently identify the beneficial owners.
The document also adds that the EU supervisory authority should take care of the traditional financial sector and simultaneously assure that there’s no misuse of cryptocurrencies for illicit activities like money laundering and terror financing.
An accommodative stand to crypto
As we are seeing, political parties and governments institutions are developing an accommodative stand for cryptocurrencies. Crypto has also turned into a new battleground for politicians to sway voters.
Apart from Germany, the European Council has initiated pro-crypto measures. It has added two more proposals namely the ‘Regulation on Markets in Crypto Assets (MiCA) framework and the ‘Digital Operational Resilience Act’ (DORA).
The European Commission had initially drafted MICA for the first time last September 2020. It also seeks to create a regulatory framework for cryptocurrencies. The framework takes into account the potential of crypto-assets and supports innovation in the space.
If the framework gets approval from the European Parliament, then crypto assets issuers will have to face more stringent regulatory norms. However, utility tokens and non-fungible tokens (NFTs) will still fall outside the scope of regulation.
A Reddit post from “BelgianPolictics” referred to this progressive regulatory proposal as the “most important one to date for the entire crypto industry”. The handle further added:
These rules will have to be followed by every entity operating in the European Union. However, because of the ‘Brussels Effect,’ there is a very good chance these rules will become international standards in the end. While everyone is focused on the US and China, the EU is casually leading the way.
It will be interesting to see how the EU approaches crypto regulations going ahead. For now, the wind seems to be turning in favor of crypto investors.
Crypto Market Down $200B as Wall Street Futures Tumble on Renewed COVID-19 Concerns
Bitcoin saw a six-week low beneath $55,000, most altcoins plummeted even more, and Wall Street futures contracts are down as well on new COVID-19 fears.
The new COVID-19 variant coming from South Africa has brought more pain to all financial markets. As the futures contracts of the world’s most prominent stock indexes have slumped, the cryptocurrency space experienced a massive correction. Bitcoin dumped to a six-week low, while some altcoins saw double-digit price drops.
Bitcoin and Global Markets Tumble
The primary cryptocurrency was on its way towards $60,000 yesterday after recovering from the previous drop below $56,000. It came roughly $500 away from challenging that coveted level, but it failed, and the landscape changed vigorously hours later.
Bitcoin dumped by $5,000 in a few hours to an intraday low of $54,300, which became the lowest price point since October 13th. As reported earlier, this enhanced volatility caused mass pain for leveraged traders as the liquidations skyrocketed to over $700 million on a daily scale.
This price crash coincides with similar developments in the global stock markets. Prompted by fears of a new COVID-19 variant coming from some African nations, the futures contracts of Dow Jones, the S&P 500, Nasdaq, and other popular indexes plummeted.
The Dow’s futures are down by more than 2%, those for the S&P 500 by nearly 1.7%, while oil prices dropped even harder. US crude oil futures declined by over 5.5%.
There Are Now 1 Million Shiba Inu Holders, Despite SHIB’s 50% Monthly Drop
The popular memecoin project Shiba Inu has reached a massive milestone of over one million token holders.
Despite the recent turbulence and decline in demand in comparison to just a few months ago, Shiba Inu’s user base has grown to one million wallets. Shortly after the team outlined the news, the native token surged by double digits, but it has retraced once more.
- Aside from NFTs and DeFi, 2021 will go down in history as the year of the memecoin with the massive popularity and price surge of Dogecoin and the subsequent emergence of countless copycats.
- One of those copycats, which actually saw the light of day last year, actually managed to steal the spotlight in Q3 – Shiba Inu.
- The self-proclaimed DOGE killer skyrocketed in price and charted an all-time high of $0.000086, which made it the most successful investment of the year with an ROI of 100,000,000%.
- At one point, it even surpassed Dogecoin in terms of market capitalization, and all of this undoubtedly attracted new users coming with the promise of quick gains.
- The adoption curve intensified in the following few months and the project updated yesterday of reaching a massive milestone – one million SHIB holders.
- While this is a long way away from arguably the most adopted and popular cryptocurrency – Bitcoin – with its nearly 39 million active addresses, it’s still a substantial achievement, given the fact that very few people had heard of Shiba Inu (not the dog) a year ago today.
- Shortly after the team announced the news on Twitter, the price of SHIB surged from a daily low of $0.000039 to a high of $0.000048. Nevertheless, the token, similarly to most of the market now, has retraced and currently sits around $0.00004.
- This one million milestone comes at an intriguing time, in which the demand for the memecoin seems to be fading. As reported earlier this week, the number of Google searches has slumped as the price is more than 50% down from the ATH charted last month.