India plans to ban private cryptocurrencies completely

Amidst the increasing adoption of cryptocurrencies globally, India plans to implement a complete ban on cryptocurrencies with a transition period to exit holdings.

India plans to ban private cryptocurrencies completely

As per Bloomberg’s report, India plans to formulate a complete ban on cryptocurrency investments. The Government intends to provide crypto holders a transition period of three-to-six months to exit their holdings. Further, a senior official from the Indian Ministry of Finance told Bloomberg that the officials prefer a digital currency published by the Reserve Bank of India (RBI), not private cryptocurrencies. Additionally, the unknown source suggested that the ban would refer to cryptocurrency transactions via digital exchanges.

Moreover, the Government has listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for introduction in the ongoing Budget session of Parliament. The nation has recently launched a cryptocurrency bill to propose a framework for designing a government-backed digital currency. Further, the bill proposed a ban on the transactions of private digital assets. Nonetheless, the Indian Government will authorize the application of blockchain technology. The official adds that it will send the proposed law for approval to the Union Cabinet. The bill will also grant India’s Reserve Bank framework to issue its digital currency.

List of Nations working towards launching its Cryptocurrencies

India isn’t the only nation to contemplate the probability of launching its cryptocurrency. Countries like Ecuador, China, Singapore, Venezuela, Tunisia, and Senegal have issued their cryptocurrencies. Those exploring options involve Estonia, Japan, Palestine, Russia, and Sweden are investigating opportunities to introduce their digital assets. Thailand has established 13 legal crypto businesses to function legally in the country. China is also aggressively promoting its applications on virtual currencies.

Conversing about India, it is an emerging economy, and the country has witnessed a significant increase in demand for crypto trading in 2021. Digital exchanges in India have seen growing volumes due to substantial retail demand. Cryptocurrency adoption has also developed in recent times as the world’s first crypto bank commenced in India in December 2020. Notwithstanding the expanding adoption, the Indian crypto community is still unsure about the future of digital assets in the country amid a lack of regulation.

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