India is set to ban most cryptocurrencies. The country’s government instead wants to create a framework for an official digital currency issued by its Federal Bank.
The government plans to introduce the bill during the parliament session that starts on Monday. The legislation seeks to prohibit all private cryptocurrencies in India, with some exceptions to allow the promotion of the underlying technology.
Authorities have raised concerns that digital money could lead to illegal activities like money laundering, drug trafficking and the financing of terrorism.
Last week, Indian Prime Minister Narendra Modi called on democracies around the world to work together to ensure that cryptocurrencies do not fall into the wrong hands.
India is one of the world’s fastest-growing cryptocurrency markets, but it has been under scrutiny by regulators.
The country’s Reserve Bank banned the trading of digital currencies in 2018. But the supreme court overturned the decision two years later.
China also banned all transactions involving Bitcoin and other cryptocurrency trading in September.
Experts say Beijing is trying to stamp out activity in crypto-assets it can’t control, as it tests issuing its own digital yuan.