Do you hold any digital assets? Or do you deal in cryptocurrencies? Then, this blog is for you. India is likely to introduce a law against cryptocurrency ban, fining any sort of trading in India or holding any such type of digital assets might be piling into the red-hot asset class.
As per the official – this law will be one of the strictest policies against cryptocurrencies, is more likely to criminalise issuance, possession, transferring crypto-assets, and trading. This policy/bill is in line with the government agenda which is called for banning private digital currencies like bitcoin and building an agenda for official virtual currency. Also, the government comments made investor’s hopes that the authorities might go easier on the flourishing market.
Official Report to Cryptocurrency Ban
As an alternative, the proposed law will provide up to six months of liquidity to cryptocurrency holders, after which penalties are levied, according to the official report. It is also assumed that the bill is more likely to enact into law under Prime Minister Narendra Modi’s government as they have a majority in parliament.
In case, if the proposed ban becomes law then India will be the first major country to make holding on cryptocurrency. Even China does not penalise possession which has already banned trading and mining. However, the finance ministry is not immediately responding to the email seeking comment.
According to industry estimates, 8 million investors in India hold around 100 billion rupees in crypto-investments. However, no official data is available for this. As per the senior officials, this policy plans to ban private crypto-assets while promoting blockchain. They also added that “We don’t have any problem with technology. There’s no harm in harnessing the technology.”