Trading, mining and holding cryptocurrency could soon be illegal in India as the Indian government is proposing a new Bill that could ban all transactions related to cryptocurrencies.
The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency. But recent government comments had raised investors’ hopes that the authorities might go easier on the booming market.
A report suggests that if this becomes a law it’ll make India the first country to officially make holding cryptocurrency assets illegal. Interestingly, this move has come after Bitcoin witnessed a fresh surge in prices after Billionaire Elon Musk’s owned Tesla Inc invested $1.5 billion in the cryptocurrency.
The cryptocurrency had hit a record high of $61,781.83 (roughly Rs. 44.7 lakhs) on Saturday after US President Joe Biden signed off on his $1.9 trillion (roughly Rs. 1,37,64,650 crore) fiscal stimulus and ordered an acceleration in vaccinations.
Because some investors tend to see Bitcoin as a hedge against inflation, analysts believe the rise of Bitcoin has been helped by the prospects of a steep economic recovery.
Bitcoin has risen more than 90% this year, broadly outperforming traditional asset classes, fuelled by the embrace of cryptocurrencies by mainstream companies and large investors.
What about people holding cryptocurrency?
Cryptocurrency holders will be given some period of time to liquidate their assets, failing to do so would attract penalties.
However, the exact penalties are yet unknown as there has been no official statement from either the RBI or the Government of India.
India has over 7 million people who have invested more than $1 billion in cryptocurrency and would be hoping for a way to get their money reimbursed before a stringent law is imposed, according to India Today.
