India has been considering a crypto ban for some time, and the country is reportedly planning to move forward with the January government agenda that is still under works.
Reuters’ new report says the country will propose a new law outlawing owning, trading, issuing, mining, and even transferring cryptocurrencies.
If passed into law, the South Asian country will have one of the stringent regulations on cryptocurrencies to date. The bill will affect millions of Indian investors engaged in the cryptocurrency world.
According to the January agenda, the country sought to ban all private cryptocurrencies like Bitcoin and Ethereum. At the same time, it proposes a framework for launching a government-issued digital coin.
A government official told the publication that if the bill passes into law, crypto players will have up to six months to liquidate their assets. After the six months grace period, the country will start fining offenders.
The applicable fines have not been explicitly specified as the bill is not yet public. It’s, however, in its final stages, according to the official.
If the 2019 government panel is anything to go by, the officials had recommended up to a ten-year jail term for any cryptocurrency-related offences.
India’s crypto ban is not an entirely new thing. Indian officials have been considering a ban on cryptocurrencies for a while, causing a skirmish with the country’s traders and entities involved in the market.
In 2018, the country’s central bank cracked down on crypto preventing banks from dealing with digital assets.
Industry players challenged that ban, and the case ended in the country’s supreme court, which ruled in favour of traders. It overturned the order but never issued an injunction that could provide a future safety net for a potential total ban. For instance, like the one that underworks.
If the bill passes into law, India will become the world’s major economy with a strict stance on cryptocurrencies. China, which has one of what is deemed strict rules on crypto, does allow possession. Only trading crypto is illegal.