icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
15 Mar, 2021 08:19

India considering TOTAL BAN on cryptocurrencies – media

India considering TOTAL BAN on cryptocurrencies – media

New Delhi is planning to propose a new law that will ban cryptocurrencies and fine anyone trading or even holding digital assets in the country, a senior government official told Reuters.

According to the source, who has direct knowledge of the plan, the bill would criminalize the possession, issuance, mining, trading and transferring of crypto-assets. It would thus become one of the world’s strictest policies against cryptocurrencies.

The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin. The authorities are also trying to set a framework for an official digital currency. 

The unnamed official said that the bill would give holders of cryptocurrencies up to six months to liquidate, after which penalties will be levied. He also pointed out that the plan is to ban private crypto-assets while promoting blockchain. “We don't have a problem with technology. There's no harm in harnessing the technology,” said the official, adding the government’s moves would be “calibrated” in the extent of the penalties on those who did not liquidate crypto-assets within the law’s grace period.

Also on rt.com Bitcoin will replace ALL global currencies at price target of $1 MILLION within decade – Kraken CEO

If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. China has already banned its mining and trading but does not penalize possession.

According to industry estimates, some eight million investors in India now hold 100 billion rupees ($1.4 billion) in crypto-investments, despite the government’s threats of a ban.

"The money is multiplying rapidly every month and you don't want to be sitting on the sidelines," crypto-investor Sumnesh Salodkar told Reuters, adding, "Even though people are panicking due to the potential ban, greed is driving these choices."

Also on rt.com Bitcoin tailor-made for India, entrepreneur tells RT’s Keiser Report

User registrations and money inflows at local crypto-exchange Bitbns are up 30-fold from a year ago, according to its chief executive Gaurav Dahake. Unocoin, one of India's oldest exchanges, added 20,000 users in January and February, despite concerns of a ban.

For more stories on economy & finance visit RT's business section