India proposes to ban cryptocurrencies and punish the miners
India proposes to ban cryptocurrencies and punish the miners

A senior government official told Reuters that India is proposing a law banning fines for anyone trading in the country or even those who own such digital assets, which could affect millions of investors.

The official, who knows the plan first-hand, stated that the bill is one of the strictest cryptocurrency directives in the world and will criminalize the possession, issuance, mining, trading and transfer of cryptocurrencies.

The move is in line with the government's January agenda calling for a ban on the use of private virtual currencies (such as Bitcoin) and the creation of a framework for an official digital currency.

However, recent government comments raised investor hopes that things could get easier for authorities in a booming market.

Instead, the official said: The bill gives holders of cryptocurrencies up to six months to liquidate, after which they will be fined.

Officials believe the bill will turn into law as the prime minister's government has a majority of seats in parliament.

If the ban becomes legal, India would be the first major economy to hold digital currencies illegally, and even China, which bans mining and trade, would not be penalized for owning that currency.

Despite the government threatening to block the implementation of the ban in India, the volume of transactions is growing rapidly and 8 million investors have now invested $ 1.4 billion in cryptocurrencies.

One cryptocurrency investor said: Money is growing rapidly every month, and although people are afraid of a potential ban, greed is driving these decisions.

Bitbns' local cryptocurrency exchange record and cash flow are 30 times higher than last year.

Unocoin is one of the oldest exchanges in India, adding 20,000 users in January and February despite concerns about the ban.

ZebPay reached a massive volume of transactions every day in February 2021 and achieved that goal in February 2020.

Senior Indian officials have described the cryptocurrency as a Ponzi scheme, a form of fraud, but this month India's finance minister has calmed some investor concerns.

She said, "I can give you evidence that we are not out of date. We are looking for ways to experiment in the world of digital currencies and cryptocurrencies and we'll be in a very planned setting."

However, the senior official told Reuters: The plan aims to block private crypto assets while promoting blockchain technology, which is the backbone of virtual currencies and can transform international transactions.

The official added: `` We do not have technical problems and we will not be harmed by the use of technology, adding that government measures will fall within the scope of penalties for those who do not liquidate crypto assets in the legal grace period.

In March 2020, India's Supreme Court annulled a 2018 central bank order banning banks from trading cryptocurrencies, prompting investors to rally together in the market. The court ordered the government to take a stand and draft a law. .

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