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India to ban crypto for payments, As China continues to ramp up crypto mining holdouts

India would be banning cryptocurrencies as a method of payment but would regulate its use as an asset according to a report by the Economic Times. A legislative bill on crypto regulation is planned to be presented in the winter session of parliament. According to reports, the details of this bill are still being finalized. In the bill, authorities also plan on banning “active solicitation” from crypto firms which includes exchanges and platforms.

The current plan is a deviation from the government’s earlier plans to outrightly ban cryptocurrencies in the country. The Reserve Bank of India had in April 2018, banned regulated entities, financial institutions, from dealing in cryptocurrencies and providing services for facilitating any person or entity in dealing with cryptocurrencies. That, however, was overruled by the Supreme Court in March 2020 with the Court stating that while unregulated, cryptocurrencies were not illegal in India.

With the currently proposed legislation, the government seems to want to take a middle road on its stance with cryptocurrencies. The bill is also expected to address taxation aspects of the market. As for a regulator, the Securities and Exchange Board of India (Sebi) seems to be a likely candidate although according to the Economic Times, that is yet to be finalized.

Meanwhile, still on the continent of Asia, China is ramping up and tightening its control of crypto mining. The spokesperson for China’s National Development and Reform Commission, Meng Wei stated this during a press conference on Tuesday. She said the NDRC would be launching a “full scale” clamp down on any mining holdouts still left in the country.

This comes on the heels of China’s outright ban on crypto mining which took China’s global share of mining operations essentially offline overnight. Miners in China had moved their equipment and operations to neighboring Kazakhstan, Europe and the U.S. The Chinese government’s criticism of the mining industry has been attributed to it’s enormous energy use and environmental impact which threatens to jeopardize the nation’s goal of carbon net zero by 2060.

In apparent response to the news, a selloff was induced and the price of Bitcoin fell by about 7% to $60,889 while Ether slid by about 8% to $4,297.

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