Future Of Cryptocurrencies In India - EtherDesk Exclusive.
2021-02-12 | Big Bob
An unknown source claiming to be a senior Indian Finance Ministry official has revealed that
the utilization of cryptocurrencies will soon be completely banned
within the world’s second most populated country.
Within an interview with
Bloomberg, the source claimed that
the utilization of cryptocurrency
altogether its forms
are going to be banned beneath
a new law expected to soon be introduced
within the parliament. Transacting with cryptocurrencies via foreign exchanges
will also be prohibited.
Crypto investors are expected to
tend a three-to-six month transition period to liquidate their holdings after the new law comes into effect, the source added.
The official emphasized that cryptocurrencies
are targeted by India’s lawmakers due to their lack of backing from the RBI.
Earlier in January, India’s parliament introduced 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' for discussion during
the continued parliamentary sessions on the country’s budget.
The Bill’s purpose was
described as creating a facilitative framework for a
financial institution digital currency issued by the RBI, and to “prohibit all private crypto assets within India.”
The co-founder and CEO of major Indian cryptocurrency exchange Unocoin added that the native crypto businesses are anxiously “waiting for details
to return bent determine [their] next course of action:”
“If the government goes ahead with banning all crypto assets, except the one backed by the state, it'll not add up to continue our business in India. But we’ll need to wait and watch.”
Earlier in
March last year, India’s Supreme Court overturned the RBI’s April 2018 blanket ban on native banks offering services to businesses
handling crypto, effectively legitimizing crypto firms across the country.
However, the Indian Ministry of Finance proposed legislation
that might again ban cryptocurrencies within the country.
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