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India plans to make Cryptocurrency Illegal

India plans to make Cryptocurrency Illegal

The ambiguity around cryptocurrencies in India proceeds as the government is now planning to propose a new bill that will ban digital money. It will penalize anyone trading in the nation or even holding such digital assets. The proposed bill will impact Bitcoin, other prominent cryptos and their investors. The new bill proposes criminalizing the possession, mining, issuance, trading, and transferring crypto-assets, a senior government official told Reuters. The government has been preparing action against cryptocurrencies for the prior few months, but current comments from prominent personalities gave investors hope. 

Nevertheless, if the new bill gets approval and transforms into law, it will be a point of concern for crypto investors. While the bill’s details remain anonymous, it would describe the biggest crackdown on crypto for any major economy. Even China, which has halted mining and trading, does not fine possession. The official admitted that the government would offer investors a window of six months to liquidate their assets before levying a penalty. In India, over 7 million people have funded more than $1 billion in cryptocurrency. They would be hoping for a way to get reimbursed before a law comes into effect.

Bitcoin witnesses surge in prices

Moreover, the official advocated that the plan prohibits crypto-assets while promoting the underlying blockchain technology. The claim comes at a time when Bitcoin witnesses a recent surge in price. The leading cryptocurrency hit a new all-time high at $60,000 on Saturday. It approximately doubled in value in 2021 as its acceptance for payments has increased with support from prominent investors. It involves Square, Tesla, MicroStrategy, etc. 

Interestingly, Nirmala Sitharaman, India’s Union Finance Minister, has interpreted that there will not be a complete ban on cryptocurrency. She said that the government is not closing all windows for cryptocurrencies, blockchain, and fintech. Moreover, India’s Minister of State for Finance and Corporate Affairs, Anurag Thakur, stated that the government is open to assessing crypto. It is investigating new technologies such as crypto to intensify governance. He states that the central government developed a High-Level Inter-Ministerial Committee to accept cryptocurrency as a lawful and legal tender in India.

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