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From the government officials, India proposes a law to ban cryptocurrencies, miners, and traders but favors blockchain technology. The proposed law will penalize holding cryptocurrencies and fine anyone trading in the country or holding such digital assets.
Plan to Ban Private Cryptocurrencies
This bill is one of the strictest policies against cryptocurrencies. Officials, who have direct knowledge of the plan say that this would criminalize possession, issuance, mining, transfer, and trading of crypto assets.
When asked about the contents of the bill, “the bill would give holders of cryptocurrencies up to six months to liquidate, after which penalties will be levied,” added by the officials.
Officials are very much confident about getting the bill enacted into law as Prime Minister Narendra Modi’s government holds a comfortable majority in parliament.
In line with the January government agenda that called for banning private virtual currencies such as bitcoin, the government is building a framework for an official digital currency. Recent government comments had raised hopes in investors that the authorities might go easier on the booming market.
What if the Ban Becomes Law in India?
If the ban becomes the law, India would be the foremost major economy to make trading cryptocurrency illegal. Even China, which has chosen to ban mining and trading, does not penalize the possession of cryptocurrencies yet.
Bitcoin, the world’s largest cryptocurrency, hit a new record high of $60,000 on Saturday. Nearly doubling in value this year the acceptance for payments in BTCs has increased with the support from high-profile backers such as Tesla Inc CEO Elon Musk.
Despite the threats introduced by the government, swelling in transaction volumes can be easily seen. Estimate says there are 8 million investors, holding 100 billion rupees in the industry. According to crypto investors, “The money is multiplying rapidly every month and you don’t want to be sitting on the sidelines, Even though people are panicking due to the potential ban, greed is driving these choices.”
However, Finance Minister Nirmala Sitharaman this month eased some investor concerns stating “I can only give you this clue that we are not closing our minds, we are looking at ways in which experiments can happen in the digital world and cryptocurrency, there will be a very calibrated position taken.”