Indian officials may hold a meeting this week to debate the Crypto Bill, which might result in a ban on the site

India’s cabinet is allegedly going to convene and consider the way ahead amid the uncertainties surrounding the country’s future course of action on cryptocurrency laws.

According to individuals familiar with the situation, the Union Cabinet may meet later this week to debate a legal framework for digital assets under the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

The summit is widely anticipated to propose legislation prohibiting private cryptocurrencies from being used as legal money. Additionally, reports claim that government officials have conducted lengthy discussions about the future of crypto legislation, the most recent of which being a November meeting headed by the Prime Minister.

As is the case in a number of other countries, the Indian government is mainly opposed to enabling cryptocurrencies to be used as legal money. The state has, however, suggested stringent rules for the industry.

Within three months, the number of Bitcoin Lightning Network nodes increased by 23%, adding approximately 3,500 nodes.

The CEO of Celsius forecasts that Bitcoin will reach $140k by Q2 2022, despite a precipitous decline below $50k. The law may be submitted before the country’s parliament after the reported cabinet meeting.

The proposed law is likely to be consistent with Financial Action Task Force (FATF) guidance, which includes updates to six key definitions of virtual assets and virtual asset service providers (IDPs), as well as risks and tools for combating money laundering and terrorist financing, as well as licencing and registration of IDPs.

Additionally, the amended FATF criteria require governments to analyse and reduce risks associated with financial operations using virtual assets.

India is taking steps toward completely regulating the cryptocurrency industry

The Indian government has been working on clarifying the country’s crypto legislation in recent months, as acceptance of digital currencies continues to expand. As previously reported by Finbold, the Indian Parliament’s Standing Committee on Finance summoned prominent cryptocurrency players to an official meeting to discuss regulatory issues.

At the same time, RBI Governor Shaktikanta Das has already expressed alarm about the cryptocurrency market’s rapid rise, warning that it should not be neglected.

The growing adoption of different assets by the country’s youthful population has contributed in the necessity for regulation. Notably, the majority of young people in India’s smaller cities are investing in cryptocurrencies such as Bitcoin as the asset develops a reputation as a store of wealth.

Also Read: Binance Smart Chain And Animoca Brands Announce The Establishment Of A $200 Million Fund For GameFi Initiatives