The Government of India is preparing to propose a law to ban the cryptocurrencies in India, to fine anyone who is trading or to fine anyone even for holding such digital assets. Government of India will be rolling out the rule in a potential blow to millions of the investors who are piling into red-hot asset class.

  • The new bill to ban cryptocurrencies that will be proposed would be one of the strictest policies in the World against cryptocurrencies.
  • The new bill would be criminalising the possession, issuance, mining, trading and transferring of the crypto-assets.
  • The new bill would provide the holders of cryptocurrencies up to 6 months to liquidate.
  • After 6 months, penalties would be imposed.
  • If this bill would become a law, then India will become the first major economy that will hold the cryptocurrency illegal.
  • The other major economy, China, though have banned mining & trading of the cryptocurrency but it has not penalised its possession.

Backdrop

The Government of India will propose this bill in line with the government agenda of banning the private virtual currencies like bitcoin apart from building a framework for the official digital currency.

Bitcoin International Transaction

World’s biggest and famous cryptocurrency Bitcoin. The cryptocurrency hit a record high of US$60,000 on 13th March 2021. This volume accounts for the double than what it was in 2020. The amount has doubled because its acceptance for payments has increased with the support of high-profile backers like CEO of Tesla Inc, Elon Musk. Government of India is to ban the use of cryptocurrency in India, despite that the transaction volume in India are increasing. In India, nearly 8 million (80 lakh) investors are holding Rupees 100 billion as per the estimates of industry.

Cryptocurrency

The Cryptocurrency is a digital asset which works as a medium of exchange where individual coin ownership records are stored in the ledger in the form of computerized database. These records are stored using a strong cryptography so as to secure the transaction records. It also helps in controlling the creation of additional coins and also verify the transfer of coin ownership.

India to Propose Cryptocurrency Ban India to Propose Cryptocurrency Ban