Total Crypto ban is Coming to India With Uncertain Liquidation Period for Holders
February 12, 2021 11:24 AM
According to a statement from an unidentified Indian official who claims the government is going to introduce a blanket bank on crypto-assets shortly.
The source claimed to be a top official from the Indian Ministry of Finance stated that using crypto assets will soon cease to exist in the country as the government will prohibit usage.
India, the second most populated country has seen crypto adoption rise in the country. In April 2018 a similar ban to that of Nigeria restricting local banks from servicing cryptocurrency businesses was introduced by RBI, it was later overturned in March 2020 by the India's Supreme Court.
Meanwhile, in June 2020 the Indian Ministry of finance proposed legislation that would again prohibit the usage of crypto assets nation-wide.
As reported by Bloomberg, the official claimed that a new law that would be introduced soon in the parliament will ban all forms of cryptocurrency. Also, the ban would affect all crypto transactions even with a foreign exchange.
Furthermore, the source claimed crypto investors are foreseen to be graced with a 3-6 months liquidation period to completely liquidate all their after the law takes effect. The official stressed that crypto assets is being targeted by Lawmakers in India because they have no form of backing from the Reserve Bank of India (RBI).
In Jan 2021, the Indian parliament passed a bill on cryptocurrency and regulation of official digital currency for debate during the ongoing Parliamentary sessions on the country's 2021 Budget.
The objective of the Bill was portrayed as creating a facilitative framework for a central bank digital currency issued by the RBI, also to “prohibit all private cryptocurrencies in India.”
Co-founder, and CEO of major Indian crypto exchange Unocoin Sathvik Vishwanath, told Bloomberg the India's local cryptocurrency industry are anxiously “waiting for the details to come out so they can decide next course of action.”
“If the administration goes ahead with banning all cryptocurrencies, except the one backed by the state, it will not make sense to continue our business in India. But we’ll have to wait and watch.”