India is expected to pass legislation prohibiting the use of cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. If this law goes into effect, it would make owning, selling, or mining cryptocurrency illegal in India. In India, it is assumed that any possession, selling, releasing, mining, or transferring cryptocurrency assets would be illegal.
In India, we will soon see a formal ban on cryptocurrency keeping, trading, and mining.
In fact, since the draught Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019 first surfaced a couple of years ago, this isn’t the first time such legislation has been considered. Is it possible that the Indian government would issue a digital currency?
According to Reuters, if the proposed ban on cryptocurrencies becomes law, India will become the first major economy in the world to make holding cryptocurrency assets illegal.
China also prohibits the mining and selling of cryptocurrencies, but people are allowed to keep any crypto assets they already own. But what about those who already have cryptocurrency in their possession?
There is supposed to be a clause that gives cryptocurrency holders a fixed amount of time to liquidate their properties, in which penalties would be imposed if they are not fully liquidated and exited.
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The precise sanctions are yet to be determined. The government and the Reserve Bank of India (RBI), which is supposed to formalise any regulatory structures for cryptocurrency in the country, have made no official statements on the potential cryptocurrency ban.
“I can only send you this hint that we are not closing our minds, we are looking at ways in which experiments can happen in the digital world and cryptocurrency,” Finance Minister Nirmala Sitharaman told CNBC-TV18 earlier this month. A rather calibrated location will be taken.”
India has never officially prohibited the trading and keeping of cryptocurrencies, but according to Reuters, industry estimates placed Indian cryptocurrency investments at around 100 billion rupees ($1.4 billion).
The threat of a ban, on the other hand, had always loomed large. The Reserve Bank of India released a circular in 2019 confirming that controlled entities in India are not permitted to provide cryptocurrency services.
For selling, owning, or trading in cryptocurrencies, the draught Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019 proposes a ten-year prison sentence.
The Supreme Court of India, on the other hand, struck down an RBI order from 2018 that explained the prohibition on banks trading in cryptocurrencies, stating that formal laws must be drafted.