Soon we will see a ban on cryptocurrency in India. Actions against minors and traders expected.
Cryptocurrencies and their traders are likely to face legal bans with penalties in India. Any trade or transaction in bitcoin or other such currencies will get prohibited. The government is thinking of putting fine as well as a freeze of such assets. In this law, the government of India will ban all the activities related to cryptocurrencies such as mining, issuance, trading, or holding.
We are expecting the world’s most strict law against these currencies is getting introduced by India soon. Whiling a tightening ban on external digital currencies, India is planning its legal digital currency. One officer said that the government would offer six months to all such currency holders to liquidize their holdings. After this time frame, people will face penalties.
BJP holds a clear majority in both houses, so we can say that this bill will soon become law.
Officer shared this information in terms of hiding his identity. When this bill becomes a law, it will new record. India will become the first nation to declare these currencies illegal. The Republic of China declared a ban on traders, but it does not penalize holders.
Size of Indian digital currency market
It is surprising to know that Indians invested nearly $1.4 billion in bitcoin. This number is not official. It will be interesting to see market reactions as indicators of the ban are spreading across the nation. Money is getting doubled in such investments, so people are getting into a trap due to greed for huge profits. They are continuously pouring money into this currency despite ban news.
Gaurav Dhahake, CEO of Bitbns, a local cryptocurrency exchange, said their user base had grown 30 tines in few years. Besides all the news, Unocoin gained 20,000 new investors in these two months. Another company called Zabpay done transactions in a month equal to the whole of 2020.Indian government officials are promoting the ban as they consider it as a Ponzi scheme.
What Finance Minister said?
Surprisingly Indian finance minister Nirmala Sitaraman said they are open to doing new experiments in this digital form of investment and currency. So this statement indicates that government is upto do something new despite banning digital currency. Many people are indicating new legal digital currency of India can be introduced.
In 2019, the government recommended imposing a 10-year jail if someone holds, generates, or does any transaction in digital currency. On the other hand, the Reserve bank of India indicated risks and flaws of such currencies. RBI is all set to launch its official digital currency, which may be legalized in the same law. People are ready to comply with the law as they are seeing hopes in official digital currency.