We have information from an anonymous source alleging to be a senior Indian Finance Ministry official. They allege that India might forbid the use of crypto assets soon in the world’s second most populated country.
Talking to Bloomberg, the source insisted that the use of cryptocurrency in all its forms would be outlawed under a new law. Moreover, the parliament should soon introduce the law. Transacting with crypto through foreign exchanges will also become illegal.
Crypto investors should have a three-to-six month transition period. They will be able to liquidate their holdings following the new law comes into effect, the source stated.
The official indicated that India’s lawmakers had targeted crypto assets because of their lack of support from the Reserve Bank of India, or RBI.
The Cryptocurrency and Regulation of Official Digital Currency Bill
In January, India’s parliament started ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’. They will take it for consideration throughout the ongoing parliamentary sessions on the country’s budget.
The Bill’s plan will create a facilitative framework for a central bank digital currency published by the RBI banning all private cryptocurrencies in India.
According to Sathvik Vishwanath, the co-founder, and CEO of major Indian cryptocurrency exchange Unocoin, Bloomberg, the local crypto industry, is anxiously anticipating details to determine the following action.
Suppose the government goes ahead with preventing all cryptocurrencies, except the one supported by the state. In that case, it will not make the reason to continue their business in India. However, they’ll have to wait and watch.
In March 2020, India’s Supreme Court reversed the RBI’s April 2018 blanket prohibition. It affects local banks providing services to businesses administering with crypto. It is effectively legitimizing cryptocurrency companies across the country.
Nevertheless, the Indian Ministry of Finance introduced legislation to prevent crypto assets nationwide in June 2020.