New details have emerged indicating that the Indian government will go ahead with banning the cryptocurrency, contrary to what the crypto community believes. In her recent speech on cryptocurrency legislation, India’s finance minister said there will be a window for trials on cryptocurrencies, blockchain and fintech.
India Reports Banning Cryptocurrency
The Indian cryptocurrency community is closely watching whether the government will ban cryptocurrencies, including Bitcoin. The Cabinet Memorandum on cryptocurrency legislation is being finalized and will be submitted shortly to the Cabinet.
The latest information regarding the ban on cryptocurrencies in India comes from Reuters, which stated on Sunday evening that “India will propose a law banning cryptocurrencies or fine anyone who trades in the country or even owns such digital assets.” The post cited an unnamed senior government official who claimed to have first-hand knowledge of the plan. He said that the bill “will criminalize the possession, issuance, mining, circulation and transfer of encrypted assets.”
According to the official:
The bill would give cryptocurrency holders up to six months to liquidate, after which penalties would be imposed.
Moreover, officials are confident that the bill will become law because Prime Minister Narendra Modi’s government enjoys a comfortable majority in parliament, the post added.
The crypto community believes there will be no ban
Not many people on social media think India will go ahead with banning cryptocurrencies, however, indicating that the information provided by Reuters is out of date. They believe that the Finance Minister, Nirmala Sitraman, indicated in her recent interviews that the cryptocurrency would not be banned.
Over the weekend, the Finance Minister spoke about the bitcoin and cryptocurrency legislation in an interview on India Today. I was asked if India is heading to the region where the government inevitably will have to realize that cryptocurrencies are here to stay.
The Finance Minister reiterated that a “ministerial memo” on the cryptocurrency “is preparing” and “nearing completion.” And confirmed that it will soon be submitted to the Council of Ministers.
In a sign that the Supreme Court has commented on the cryptocurrency and that the Reserve Bank of India (RBI) will make a call regarding the official digital rupee, the Finance Minister confirmed:
On our part, we are very clear that we are not closing all options. We will allow a certain amount of windows for people to use that allow them to experiment with blockchain or bitcoin or whatever you might want to call it, and cryptocurrency and financial technology experiments based on such experience.
However, she stressed that the specific rules around cryptocurrencies will be in the Cabinet Memorandum, which will be “ready soon.”
Earlier this month, Bitcoin.com News mentioned The Finance Minister said: “There will be a very calculated position to take … We are not closing our minds. We are definitely looking at ways in which experiments can happen in the digital world, cryptocurrencies and so on.”
Her remarks gave the Indian crypto community hope that India would regulate cryptocurrencies rather than impose an outright ban.
However, according to the latest Reuters report, the senior official said the plan is to block private crypto assets while promoting blockchain and fintech technology. He was quoted as saying:
We don’t have a problem with technology. No harm from harness technology.
He explained that the government’s actions would be “calibrated” within the scope of the penalties imposed on those who did not liquidate encrypted assets during the law’s permissible period.
In the cryptocurrency bill that was published in 2019, the ministerial committee responsible for drafting the bill recommended “imprisonment of up to 10 years for people who mine, create, keep, sell, transfer, dispose of, issue or deal in cryptocurrencies. “. Quoted, adding that the official refused to discuss details in this area.
Meanwhile, cryptocurrency traders in India are enjoying the cryptocurrency boom as the price of bitcoin has reached an all-time high of several times in recent months. The country’s leading cryptocurrency exchanges have reported record trading volumes and new user numbers. “The money is doubling rapidly every month, and you don’t want to sit on the sidelines,” Reuters quoted a cryptocurrency trader named Sumensch Salodkar as saying. “Although people are terrified by the potential ban, greed is the driving force behind these options.”
Do you think India will continue to ban Bitcoin? Let us know in the comments section below.
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