The Indian government is planning to introduce a new bill that will not only ban cryptocurrency but also fine anyone trading or owning it in the country. The targeted currencies include Bitcoin, Ether, Dogecoin, and most other forms of digital currency. The new bill will criminalize possession, issuance, mining, trading, and transferring crypto-assets, a senior government official told Reuters.
There had been reports of such a law for a while now, but recent comments had given investors and miners a bit of hope. If this bill is passed, India will become the first country to outright prohibit the mining, trading, and possession of cryptocurrency. Although some regions of China such as Inner Mongolia have banned the mining for Ethereum and Bitcoin, trading and possession are still allowed.
Officially, the government has said that it will ban the private ownership of cryptocurrency while allowing blockchain technology which is the basis for digital currencies. The Finance Minister of India also clarified that there won’t be a complete ban on cryptocurrency, but hasn’t explained what that means for investors. As per the FM, a Cabinet note was being readied in this regard, which will give exhaustive information on the formulation of cryptocurrency in India.
Luckily for investors, there will be a six-month window to liquidate all cryptocurrency assets before the law kicks in. As many as 7 million Indians have invested over $1 billion in Bitcoin and other cryptocurrencies, and this may lead to some exchanges taking advantage of the rushed selling.