India is known as the second-most populated country in the world, currently, after China, which is the most populated country in the world. The presence of India in the world of cryptocurrencies is also imminent as a growing interest in cryptocurrencies has been noted out there. However, the government of India is not yet certain about digital currencies. Last year, it levied a ban on cryptocurrency activities. Now, according to a source, the government is once again planning on imposing a ban on cryptocurrency investments.
According to a report from Bloomberg Quint, an anonymous source recently spoke to Bloomberg and disclosed this fact. He said that a senior government official from Indian Finance Ministry has claimed that there is likely a chance that they ban the use of digital currencies completely for users in the country. The ban will prohibit the use of digital assets in all forms. It will also prohibit users from transacting cryptocurrencies through foreign cryptocurrency exchanges.
As per the source, the parliament is likely to introduce a new law, and the new cryptocurrency investment ban will likely come under this law.
A Three-To-Six Month Transition Period For Liquidation
However, the official said that the government is not going to impose the ban overnight. Instead, it intends to give a transition period of 3 to 6 months to existing investors while giving them a chance to liquidate their cryptocurrency holdings.
According to the source, the official further asserted that lawmakers of India have been targeting digital currencies as they are not backed by the Reserve Bank of India (RBI), the central bank of India. Based on this, the government is now going to levy a complete ban on the usage of digital assets. As the official claimed, India is expected to model its cryptocurrency law on the cryptocurrency regime of China, which has already imposed a ban effectively on the trading of cryptocurrencies. However, China’s ban is different as the country has only prohibited the trading of fiat against crypto for users, but they still can access cryptocurrency-to-cryptocurrency trading.
India’s one of the major digital currency exchanges, Unocoin’s Chief Executive Officer (CEO) and Co-Founder Sathvik Vishwanath said while speaking to Bloomberg that if the government of India imposes this ban, then there will be no meaning of operating their business in the country.
Prior to this, a bill known as “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” was also introduced by the parliament at the beginning month of this year.
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