Cryptocurrency enthusiasts in India are growing anxious as more reports of a possible ban on digital assets continue to surface. The latest report is claiming that the Indian parliament will soon introduce a blanket ban on crypto assets, and give holders some time to liquidate their funds.
A recent Bloomberg report cites an anonymous source claiming to be a senior Indian Finance Ministry official, stating that the use of digital currencies will be completely banned in the nation. The use of cryptocurrencies in all their forms will be prohibited under the new law, and Transacting with crypto via foreign exchanges will also be prohibited.
After the new law comes into effect, Indian crypto investors will have a three-to-six month period to liquidate their funds. The official continued that the regulators are cracking down on crypto use due to the lack of backing from the Reserve Bank of India, the nation’s central bank.
As previously reported by The Daily Chain, a bill titled Cryptocurrency and Regulation of Official Digital Currency was introduced in the Lok Sabha bulletin in January. The bill looks to “prohibit all private cryptocurrencies”, while also allowing for “certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
Reports also suggest that the lawmakers might be taking the “ordinance route” to speed up the process of introducing the crypto law “within a month” of it being issued. According to some industry experts, this decision is just a move to mitigate illicit activities.
According to Kumar Gaurav, founder, and CEO of cryptocurrency exchange Cashaa:
“They can certainly ban the legitimate use of crypto which will only make it difficult for a common person who does not understand it to get involved in it. However, what we understand is that the Indian government is trying to crack down on scams that are running in the name of Bitcoin,” he said.
Businesses to exit India?
Meanwhile, some business owners are anxiously “waiting for details to come out to determine [their] next course of action.” Sathvik Vishwanath, the co-founder, and CEO of major Indian cryptocurrency exchange Unocoin, expressed concerns, stating:
“If government goes ahead with banning all cryptocurrencies, except the one backed by the state, it will not make sense to continue our business in India. But we’ll have to wait and watch.”