A law that will impose a Cryptocurrency ban will be proposed by the Indian government. Those who trade in cryptocurrency or hold such digital assets will be fined. This will be one of the strictest policies against cryptocurrencies in the world. The law will criminalize possession, issuance, mining, trading, and transferring crypto-assets.
Reports suggest the bill is in line with another agenda called by the government earlier in January, it called for the ban of private virtual currencies such as bitcoin. India will instead be laying a foundation for developing its own official digital currency.
The investor had a glimmer of hope from the government to go easy on this decision with the markets booming. Instead, the new bill will allow cryptocurrency holders a period of six months to liquidate. After this period investors will be levied with penalties, said one of the officials while talking to CNBC.
This will be a major step for cryptocurrency investors in India if the law is passed. Individuals in possession of digital currency will be termed illegal. Earlier China also banned mining and trading but it does not penalize possession. You may like to know more about Bitcoin Storage Wallets.
Why is Bitcoin so popular?
Bitcoin is the world’s biggest cryptocurrency, it has doubled its value this year making a record-high $60,000 on Saturday. The digital currency is widely accepted for payments and is backed by many high-profile users such as Tesla CEO, Elon Musk. In Spite of the fear of the cryptocurrency being banned lurking has not slowed down the transaction volumes. Trading insiders suggest nearly 8 million investors hold 100 billion rupees ie around $1.4 billion in the form of crypto investment. Though there is no official data available to support these claims.
Countries Where Bitcoins are Allowed
- United States of America
- United Kingdom
- The European Union
Countries Where Bitcoins Are Not Allowed
- Bolivia, Columbia, and Ecuador
Bitcoin has been around for nearly 10 years, yet many countries still do not have a clear policy or system that restricts, regulates, or bans cryptocurrency. Bitcoins are decentralized and anonymous in nature which makes it a challenge for many governments to implement laws to prevent criminal transactions. It is not just India but many other countries are still analyzing ways to regulate cryptocurrency. The truth is Bitcoin still remains in the grey area for many countries in the world.