Finance
By: Shree1news, 15 MAR 2021
The uncertainty around cryptocurrencies in India continues as the government is now planning to suggest a new law which will not only ban digital money however will also fine anyone trading in the nation or even holding such digital property. This will impact Bitcoin, Dogecoin and different crypto money investors. The new bill proposes to criminalise possession, issuance, mining, trading and transferring crypto-assets, a senior government official informed Reuters.
The government has been planning been an action against cryptocurrencies for past few months however recent comments had given some hope to investors. However, if the new bill is enacted into a law, it is going to be a point of concern for investors. It will make India the first major economy to make holding cryptocurrency illegal. Even China, which has banned mining and trading, does not penalise possession.
The official mentioned that investors will be given a window of six months to liquidate their assets before a penalty is levied on them. In India, over 7 million people are believed to have invested more than $1 billion in cryptocurrency and would be hoping for a way to get reimbursed before a law is imposed.
The industry is also hopeful that the government is not going to impose a complete on cryptocurrencies including and might just end up regulating the trade.
The official mentioned that the plan is to ban private crypto-assets whereas promoting blockchain the technology which forms the backbone for virtual currencies. The claims come at a time when Bitcoin has seen a fresh surge in price. World’s biggest cryptocurrency hit a record high $60,000 on Saturday, nearly doubling in value this year as its acceptance for payments has increased with support from such high-profile backers as Tesla Inc CEO Elon Musk.
Interestingly, Union Finance Minister Nirmala Sitharaman has clarified that there will not be a complete ban on cryptocurrency. Speaking at the India Today Conclave South on Sunday, the finance minister stated that the government is not shutting all windows for cryptocurrencies, or blockchain, and fintech as yet. She mentioned {that a} Cabinet note was being readied on this regard, which is able to give exhaustive information on the formulation of cryptocurrency in India.
“My view on this is that, of course, the Supreme Court has commented on cryptocurrency and while the RBI may take a call on official cryptocurrency, from our side, we’re very clear that we are not shutting off all options,” mentioned FM Sitharaman
Source:A-N
