New Delhi, Nov 28, : , The Centre’s proposed Bill regarding cryptocurrency regulation is expected shift a large number of investors to equity market, analysts stated. The Centre will present the Cryptocurrency Regulation of Official Digit Currency Bill 2021 to Parliament during the winter session that begins Monday.
This bill, which seeks to ban all private cryptocurrencies, is expected to be presented by the Centre.
The Centre’s goal is to “create a facilitative framework in order to create the official digital currency that will be issued by Reserve Bank of India”.
The Bill has been submitted to the Lok Sabha for consideration, introduction, and passage.It is one of 26 new bills that will be introduced in Parliament’s Winter session.
“The total crypto investors in India is approximately 10 crore, and there are currently only 8 crore demat accounts in the Indian system.Total investment is approximately Rs 6 lakh crore.
This amount of investment will shift into the equity market if the Indian government places a blanket ban,” CapitalVia Global Research Lead Commodities and Currencies Kshitij purohit said.
Deepak Jasani (Host of Retail Research at HDFC Securities), says that this Bill will not have any impact on foreign institutional investors (FIIs).
They are currently investing in primary markets and then selling in secondary markets.
“The cryptocurrency bill may not have much impact on FII flows because the FIIs aren’t expected to deal with these while investing in any market going by current trends.
He said that FIIs do not want to be antagonized by governments or their regulatory authorities, given the fact that most governments want to discourage cryptos other than those promoted and supported by their central bank.
“If there is a blanket ban on cryptos India that is enforced rigorously, then some of the money invested could trickle into equity markets.
Crypto traders and investors are currently trading or investing in cryptos to take advantage of the increased volatility and the expectation of a rise in their prices in the future as a safe haven.These people cannot be guaranteed that equities will provide them with complete security.
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