India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets
According to Reuters, a senior Indian official said the government is set to propose a law making it illegal to mine, trade, or even hold private cryptocurrencies. As such, there is a high possibility that in the coming time, India will propose a law banning cryptocurrencies. Furthermore, they fined anyone trading domestically or even holding such digital assets.
But, the recent comments of the Indian government completely contradict the above proposal. They have unintentionally sparked investors’ hopes that the authorities could more easily take on the booming market.
Bitcoin price pulls back on report of coming India ban
In fact, this news is not new because, in January 2021, on the government’s agenda, India called for a ban on unregulated and regulated cryptocurrencies like Bitcoin. Instead, they will build the framework for a more formal digital asset.
The Indian official said:
“The bill would criminalize possession, issuance, mining, trading and transferring crypto-assets.”
The bill will give crypto holders up to six months to liquidate, after which they will be fined. The bill will likely be enacted into law when Prime Minister Narendra Modi’s government has majority support in parliament. If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. Even China, which has banned mining and trade, has not penalized the act of stockpiling.
However, this scheme only bans cryptocurrencies but still promotes blockchain.
They said:
“We don’t have a problem with technology. There’s no harm in harnessing the technology.”
Furthermore, the government’s moves would be calibrated to the extent of the penalties on those who did not liquidate crypto-assets within the law’s grace period. The news has sent bitcoin down about $ 1.000 in the last few minutes, now trading at $ 59.100.
Earlier this weekend, bitcoin raced to new records, trading as high as $ 61.700.
Read more:
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- India Is Considering Testing Cryptocurrencies Instead Of Banning Them, Will The Situation Change?