TL; DR Breakdown
- The Indian government plans a complete cryptocurrency ban, prohibiting all crypto transactions in the country.
- The CEO of Unocoin says it is impossible for the firm to continue its operation in the country if the law is enacted.
- An unknown government official says the ban is to promote the central bank digital currency.
Crypto ban looms in India
Even with the current crypto mania in the whole world currently, India is considering plans to ban cryptocurrency transactions completely in the country. This news came from an unknown source in the government, saying that the discussions about the ban is ongoing.
The source said further that the ban to be passed soon by the parliament would cover all forms of crypto transactions. The official also noted that trading cryptocurrency through foreign exchanges won’t be allowed as well. The government said it is going to give holders about three to six months to liquidate their crypto investments.
Crypto Ban: To promote central bank issued digital currency
The parliament had earlier, in January, introduced “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’’ to be discussed in the current parliamentary session being held. The bill was passed to enforce a crypto ban in the country and to aid the digital currency issued by the central bank.
The unknown source said that digital assets have been a target for the lawmakers of the country for some time due to the fact that they are unregulated and not backed by the Reserve Bank of India. Similarly, in 2018, banks were prohibited from providing crypto services which was later reversed by the Supreme Court in 2020.
The CEO of a top crypto exchange in India, Unocoin, said that it is impossible for the exchange to continue its operations in the country if the crypto ban is enacted. He claimed they were eagerly awaiting the outcome of the session to decide on what was going to be the next step.