No other large nation has executed this sort of ban on cryptocurrency. China, which has a few of the harshest policies, forbids trading coins but does not disallow owning them.
The in-progress proposition follows a years-long fight between cryptocurrency traders and the Indian federal government. Indias main bank cracked down on Bitcoin in 2018, prohibiting banks from dealing in virtual currencies. Its Supreme Court reversed the decision in 2020, but it didnt necessarily preclude passing a brand-new, even stricter law– like whats on the table now.
The Indian federal government detailed its plans in January, when it published an agenda for the upcoming legal session. That agenda included banning “all private cryptocurrencies” in India, with some exceptions to promote the general usage of blockchain innovation. The objective is to present an official government-issued digital currency while banning private alternatives like Bitcoin– which reached a record high earlier this month, trading at $59,755.
Under the plan, people who own these digital possessions would have six months to liquidate their holdings. Reuters source, a government authorities, didnt specify the penalty for breaking the guidelines after that. A 2019 government panel recommended a jail sentence of up to 10 years for cryptocurrency-related offenses. The authorities says the discussions remain in their “final phases,” although theres no strict timeline for presenting the expense.
India is reportedly progressing with a sweeping restriction on cryptocurrencies. According to Reuters, the countrys legislature will introduce a bill that criminalizes trading, mining, providing, moving, or having cryptocurrency. The costs is most likely to pass if its presented, giving India a few of the worlds strictest digital currency laws.