New Delhi is forced to propose a new law that will ban cryptocurrencies and fine anyone trading or even holding digital assets in the country, a senior government official told Reuters.

According to the source, who has direct knowledge of the plan, the bill would criminalize the possession, issuance, mining, trading and transferring of crypto-assets. It would thus become one of the world’s strictest policies against cryptocurrencies.

The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin. The authorities are also trying to set a framework for an official national digital currency.

The unnamed official said that the bill would give holders of cryptocurrencies up to six months to liquidate, after which penalties will be levied. He also pointed out that the plan is to ban private crypto-assets while promoting blockchain.

If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. China has already banned its mining and trading but does not penalize possession.

According to industry estimates, some eight million investors in India now hold 100 billion rupees ($1.4 billion) in crypto-investments, despite the government’s threats of a ban.

User registrations and money inflows at local crypto-exchange Bitbns are up 30-fold from a year ago, according to its chief executive Gaurav Dahake. Unocoin, one of India’s oldest exchanges, added 20,000 users in January and February, despite concerns of a ban.

There is a mistake in Bitcoin system. Satoshi Nakamoto should have limited the ownership by say 1 bitcoin/person or account. This would had deterred huge capitalists investing into this system and left it to the ordinary people for wealth protection system.

RT. com / ABC Flash Point Crypto-Currency News 2021.

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Paul Citro
Paul Citro
01-07-21 15:07

Bitcoin is an invitation to create huge bubbles that can burst creating widespread economic havoc.

Reply to  Paul Citro
01-07-21 15:12

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Star Dusty
Star Dusty
01-07-21 15:08

India stepping into the dark ages again. The mining of Crypto currencies should be banned like in China, for excessive energy use, but the concept, once energy efficient, will never go away. (The banks can no longer have control)