New details have surfaced suggesting that the Indian government will continue to ban cryptocurrencies, contrary to what the crypto community believes. In her latest interview on cryptocurrency legislation, India’s finance minister said there will be a window for experimentation with cryptocurrencies, blockchain and fintech.
India announces ban on cryptocurrencies
An Indian crypto group is keeping a close eye on whether the government will ban cryptocurrencies, including bitcoin. A cabinet paper on crypto currency legislation is in the works and will be submitted to the cabinet soon.
The latest news on India’s ban on cryptocurrencies comes from Reuters, which reported on Sunday night that India will propose legislation to ban cryptocurrencies, punishing anyone who trades or even owns these digital assets in the country. The publication quoted an unnamed senior government official as saying that he was directly aware of the plan. He said the law would criminalize the possession, issuance, mining, trading and transfer of crypto assets.
According to the official:
The bill would give cryptocurrency holders a liquidation period of up to six months, after which penalties would be imposed.
Moreover, officials are confident that the bill will be passed as Prime Minister Narendra Modi’s government has a comfortable majority in Parliament, the statement said.
The cryptographic community believes there will be no ban.
Many people on social media do not believe that India will go ahead with the ban on crypto currency, but this suggests that Reuters’ information is outdated. They believe that Finance Minister Nirmala Sitharaman has indicated in her recent interviews that cryptocurrencies will not be banned.
Over the weekend, the finance minister spoke in an interview with India Today about bitcoin and laws governing crypto-currencies. He was asked if India is heading towards a zone where it is inevitable that the government will have to understand that cryptocurrencies are here to stay.
The finance minister reiterated that the government paper on cryptocurrencies is being prepared and is nearing completion. She confirmed that it will be brought to the station soon.
The Finance Minister confirmed that the Supreme Court has issued a ruling on the crypto currency situation and the Reserve Bank of India (RBI) will take a decision on the official digital rupee :
For our part, we are very clear that we are not ruling out all options. We’re going to allow some windows for people to experiment with blockchain, bitcoin or whatever you want to call it, cryptocurrency experiments, and for fintechs that depend on such an experiment to have that window.
However, she stressed that specific regulations on cryptocurrencies will be included in a cabinet paper that will be ready soon.
Earlier this month, Bitcoin.com News reported that the finance minister said: This will be a very aligned position….. We’re not closing. We’re definitely looking at how to experiment in the digital world, in cryptocurrencies, etc.
Their statements gave the Indian cryptocurrency community hope that India would regulate cryptocurrencies instead of imposing an outright ban.
However, according to a recent Reuters report, a senior official said the plan is to ban private crypto assets while promoting blockchain and fintech. He was quoted:
We have no problem with technology. There is nothing wrong with using technology.
He explained that the government’s actions would be calibrated in the degree of penalties for those who fail to liquidate crypto assets within the timeframe set by the law.
In a cryptocurrency law released in 2019, the inter-ministerial committee in charge of drafting the law has recommended prison terms of up to 10 years for people who mine, create, store, sell, transfer, dispose of, issue or sell cryptocurrencies, the publication reported, adding that the official declined to discuss details in this area.
Meanwhile, Indian crypto traders are enjoying a cryptohausse, with the price of bitcoin reaching record highs several times in recent months. The country’s largest cryptocurrency exchanges are reporting record trading volumes and the number of new users. Money multiplies rapidly every month and you don’t want to sit on the sidelines, said a crypto trader named Sumnesh Salodkar, as quoted by Reuters. Although people are panicking about a possible ban, it is the lure of money that is driving this decision.
Do you think India will ban bitcoin again? Let us know your comments in the section below.
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frequently asked questions
Will India ban cryptocurrencies?
The Indian government may not ban cryptocurrencies completely. … The proposed legislation would also include a system for creating and regulating an official cryptocurrency issued by the country’s central bank and promoting blockchain, the technology behind digital currency.
Will bitcoin be banned in India in 2019?
However, it cannot be concluded that bitcoins are illegal as they have not been banned in India so far. The Supreme Court of India, in its order dated 25… February 2019 asked the government to formulate a foreign exchange policy based on cryptocurrencies.
Which country recently banned crypto-currencies?
Bitcoin is the most widely used form of crypto currency. Despite their growing popularity, some countries have banned cryptocurrencies. Saudi Arabia, Algeria, Bolivia, etc.
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