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India is on the verge of imposing what might be one of the strictest crypto bans in the world. The government is reportedly planning to propose a law that would make cryptocurrency trading and even owning digital currencies such as Bitcoin (BTC) and Ether (ETH) illegal in the country.
For months now, India’s crypto community has been increasingly worried as various rumors surfaced saying that the government could impose a ban on cryptocurrency. However, a recent Reuters report appears to have confirmed that the government is indeed planning to propose an anti-crypto bill that could be one of the world’s strictest policies against cryptocurrencies.
A senior government official who has direct knowledge of the plan told Reuters that the bill “would criminalize possession, issuance, mining, trading and transferring crypto-assets.” This could be a cause of serious concern for the millions of investors in the country who have exposure to digital currencies.
In January, the government-backed bill called the “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” pushed for the creation of the country’s central bank-issued digital currency while banning privately issued cryptos such as Bitcoin. However, investors remained hopeful that the government might go easy on the booming digital asset market as the bill would also allow “for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
Some were hopeful that the government might opt for a crypto regulation instead of a total ban. “I do not believe there will be a complete ban on crypto in India,” Wazirx CEO Nischal Shetty previously said. “Most importantly, no government anywhere in the world will destroy Rs. 7,500+ crore worth of assets belonging to 7 million people.”
However, Reuters’ recent report appears to have confirmed the government’s intention to push through with the ban. Crypto holders are given up to six months to liquidate their assets or risk facing penalties should they refuse, according to the government official, who requested not to be named.
India would become the first major economy that would make owning crypto illegal should the bill gets enacted into law. While China has banned crypto mining and trading, it does not penalize possession.
