India to introduce bill that makes owning cryptocurrency illegal

bitcoin

In a big blow for those who own cryptocurrency, the Indian government is making a big move against the same. The government looks set to create a bill that bans owning any form of cryptocurrencies. According to Reuters, the legislature will introduce this bill that criminalizes any activity – mining, trading, transferring, issuing, or even possessing cryptocurrency. The bill will most likely pass, given how India’s digital currency laws are strict.

 

For those who own these digital assets, a six-month grace period will be given to liquidate any assets. A government official who is also a Reuters’ source didn’t specify what the punishment is for breaking rules post that. A 2019 panel also recommended a 10-year ban for any form of cryptocurrency offenses. The official also confirmed that the discussions are in the “final stages,” even if there isn’t a set date for the introduction of the bill.

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What else to expect?

 

The government outlined its plans back in January, as it published the agenda during a legislative session. The agenda also included any form of private cryptocurrency in India, with exceptions to promote any general use of blockchain technology. 

 

The government’s goal is to promote the general use of blockchain technology, as they look to roll out a government-issued digital currency. Private alternatives such as Bitcoin will be outlawed. The move looks likely even as Bitcoin reached a record high of $59,755 recently. Such a move towards banning cryptocurrency hasn’t been seen. China, which itself is known for having harsh policies has prohibited trading but not outlawed owning of these coins.

 

The proposal follows a long fight between the Indian government and cryptocurrency traders. The central bank cracked down on Bitcoin back in 2018 and banned banks from dealing in any form of virtual currency. The central government cracked down on Bitcoin in 2018 and banned banks from dealing in virtual currencies but the decision was overturned by the Supreme Court in 2020.