The 2021 Cryptocurrency and Regulation of Official Digital Currency Bill has two purposes
Back in March 2020, the Supreme Court of India had previously overturned the RBI's 2018 circular to ban all cryptocurrencies. However, the introduction of this new bill would threaten the cryptocurrency industry yet again in India. Parliament will conclude with the bill's introduction on April 8 for feedback and revisions.
As stated by a senior Finance Ministry official, the bill was modeled after China's laws. China is also building its own digital yuan. However, only crypto-to-fiat trading and ICOs are banned in China while crypto-to-crypto trading is still legal. China recognizes bitcoin as a commodity rather than as a legal tender.