India: Government May Soon Ban Cryptocurrency Altogether

DIGITAL If the law is introduced and passed by the Indian parliament, it will become illegal to mine, hold, produce, transfer or trade any virtual currency in the country

The central government may soon impose restrictions on keeping or selling cryptocurrencies. For this, there is a preparation for a strict law, which will have a provision for punishment along with the fine. Existing customers can be given six months to sell cryptocurrencies before the law is enacted.

According to sources related to the case, the government is going to introduce the Digital Currency Bill-2021 in Parliament soon. If it passes, India will be the first country to ban cryptocurrency. Earlier, Governor and Finance Minister Nirmala Sitharaman has also protested against cryptocurrency.

The committee constituted in 2019 by the government has recommended 10 years of punishment to those who do business or buying and selling it. Sources said that how much penalty will have to be paid in this bill to get out of the crypto property and give it legal recognition is not yet decided.

100 billion rupees invested in India
Despite the government warning to ban cryptocurrencies, the number of people investing in bitcoin like digital currency has reached 8 million in India. Indian investors have already invested Rs 100 billion in Bitcoin. Last Saturday, the value of bitcoin reached $ 60 thousand in the global market, which has more than doubled in 2021. Indian investment has grown 30 times compared to last year. In January-February itself, 20 thousand new investors are added.

$ 60,000 per Bitcoin
From the entry into force of the law, digital currency enthusiasts would have six months to liquidate their wallets before risking penalties or fines. The nature and amount of these remains otherwise unknown at this time. The source assured that the Indian government was considering “calibrated” sentences, but during discussions on the subject in 2019, politicians had mentioned sentences of ten years in prison.

This measure could tarnish somewhat the meteoric rise of Bitcoin, which for the first time exceeded $ 60,000 on Saturday March 13, before falling again. This success is in part due to recent investments by several billionaires, such as Tesla and SpaceX boss Elon Musk.

 

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