The government of India is preparing to propose a new bill that would not only outlaw digital money but also fine anybody, found selling or possessing such digital assets in the region. Investors of Bitcoin, Dogecoin, and other cryptocurrencies would be impacted. According to a senior government official, the current bill aims to take ownership, issuance, mining, selling, and exchanging crypto-assets unlawful.
Over the past few months, the government has been considering an operation against cryptocurrencies, but new statements have given investors some optimism. However, once the current bill becomes law, it would be a source of anxiety for them. This will make India the first global economy to make cryptocurrency ownership illegal. And China, which has outlawed mining and trade, does not make ownership an offense.
According to the official, investors will be granted a six-month timeframe to buy back their investments before being penalized. About 7 million citizens in India are thought to have spent more than $1 billion in cryptocurrencies and are looking for a way to be reimbursed until legislation is enacted.
The industry is also confident that the government will not place a total ban on cryptocurrencies and will instead regulate the trade.
According to the official, the idea is to prohibit private crypto-assets whilst encouraging blockchain technology, which serves as the foundation for virtual currency. The comments occurred at a cost when Bitcoin is seeing a new price increase. The world’s largest cryptocurrency reached a record high of $60,000 on Saturday, nearly doubling in value this year as its adoption for payment has grown thanks to high-profile supporters such as Tesla Inc CEO Elon Musk.
Surprisingly, Union Finance Minister Nirmala Sitharaman has stated that cryptocurrencies will not be fully prohibited. The finance minister said on Sunday at the India Today Conclave that the government is not yet closing all doors to cryptocurrency, blockchain, and fintech. She said that a Cabinet note is being prepared in this regard, which will include detailed information on the development of cryptocurrency in the nation.