The government is considering considering a proposal to treat cryptocurrencies as a financial asset while safeguarding small investors, according to people familiar with the matter who were cited in a Bloomberg report.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' is among 26 new bills on the agenda of the government for the winter session of parliament beginning November 29.

The bill aims “to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses," it said in a notification on Lok Sabha website.

According to the website, the much-awaited cryptocurrency bill is likely to prohibit all the private cryptocurrencies in India, with certain exceptions.