India to ban Bitcoin, Dogecoin and other crypto currencies with move that targets miners and traders


Uncertainty surrounding cryptocurrencies in India persists as the government now considers proposing a new law that will not only ban digital currency, but also impose a fine on anyone trading in the country or even holding such assets. digital.

The government has been planning action against cryptocurrencies for the past few months.

STRONG POINTS

  • India is planning a new bill against cryptocurrency.
  • Action will be taken against crypto investors.
  • Investors are expected to have a six-month window to liquidate their assets.

Uncertainty surrounding cryptocurrencies in India persists as the government now considers proposing a new bill that will not only ban digital currency but also impose a fine on anyone trading in the country or even holding money. such digital assets. This will impact Bitcoin, Dogecoin, and other cryptocurrency investors. The new bill proposes to criminalize the possession, issuance, mining, trading and transfer of crypto-assets, a senior government official told Reuters.

The government had been planning action against cryptocurrencies for a few months, but recent comments had given investors some hope. However, if the new bill is enacted into law, it will be of concern to them. This will make India the first major economy to make the holding of cryptocurrency illegal. Even China, which has banned mining and trading, doesn’t penalize possession.

The official said investors will have a six-month window to liquidate their assets before a penalty is imposed on them. In India, over 7 million people have reportedly invested over $ 1 billion in cryptocurrency and are hoping for a way to get their money back before a law is imposed.

The industry is also hoping the government won’t impose comprehensive regulations on cryptocurrencies, including and may end up regulating trade.

The official said the plan is to ban private crypto-assets while promoting the blockchain technology that is the backbone of virtual currencies. The claims come at a time when Bitcoin has seen another price spike. The world’s largest cryptocurrency hit a record high of $ 60,000 on Saturday as its value nearly doubled this year as its payment acceptance increased with the backing of top funders like Elon Musk, CEO of Tesla Inc .

Interestingly, Union Finance Minister Nirmala Sitharaman made it clear that there will not be a complete ban on cryptocurrency. Speaking at India Today Conclave South on Sunday, the finance minister said the government is not yet closing all windows for cryptocurrency, or blockchain, and fintech. She said that a Cabinet Note was being prepared in this regard, which will provide comprehensive information on the formulation of cryptocurrency in India.

“My take on this is that, of course, the Supreme Court has commented on the cryptocurrency and while the RBI may take an appeal on the official cryptocurrency, on our side we are very clear on the point. that we are not closing all options, ”FM Sitharaman said.

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