Indian Investors panic over their cryptocurrency investments as the government is set to examine a bill related to “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.”

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 will focus on making possible a framework to create an official digital currency which will be issued by the Reserve Bank of India (RBI)

The bill is also expected to prohibit privacy cryptocurrencies in the country. They might not ban cryptocurrencies which are traceable.

A complete ban sounds like a “Technological Suicide.”

India is not the first country to step in to regulating or banning cryptocurrencies.

China has the most restrictions in the cryptocurrency space.  Despite the ban transactions are happening through foreign exchanges. The government warned their citizen stating investors of cryptocurrencies would not get any kind of protection in case they run in to issues with investing in cryptocurrencies. Banks and payment platforms were in turn asked to stop supporting cryptocurrency related transactions.

In the month of September, China made it clear that those who involved in the virtual currency-related businesses will be criminally liable and will be prosecuted.

In the European Union, each country has their own regulation.  Some countries have a soft-touch regulatory framework. A recent regulation from the European Commission says that cryptocurrencies will be treated as regulated financial instruments. “Any firm holding, trading, offering brokerage services, or providing investment advice regarding cryptocurrencies will need prior approval from the regulators as per the draft.”

In the UK, cryptocurrencies are not directly regulated, but the Financial Conduct Authority (FCA) grants licences to authorized cryptocurrency-related businesses.  Investors have been warned to invest with caution.

USA has been allowing cryptocurrency related activities; however, different states in the USA have varying regulations.

In Canada, cryptocurrencies are not a legal tender, but cryptocurrency transactions are taxed.

In France, cryptocurrency is treated at par with movable property.

During April 2021, Turkey banned the use of cryptocurrencies and also the usage of crypto to purchase goods and services.   The Central Bank Legislation states that digital assets cannot be used directly or indirectly as an instrument of payment.

El Salvador is the only country which accepts and recognizes Bitcoin as a legal tender. The country permits any goods or service previously payable in dollars to be now paid in bitcoin.

Countries who do not want to lose out on the competency of the technological innovation would not ban cryptocurrency completely.