New details have emerged suggesting that the Indian government will go ahead with banning cryptocurrency, in contrast to what the crypto community believes. In her latest interview regarding cryptocurrency legislation, Indiaâ€™s finance minister said that there will be a window for experimentation for cryptocurrency, blockchain, and fintech.
Reports of India Banning Cryptocurrency
The Indian crypto community is closely watching whether the government will ban cryptocurrencies, including bitcoin. A cabinet note regarding cryptocurrency legislation is being finalized and will soon be submitted to the cabinet.
The latest information regarding the Indian crypto ban comes from Reuters which reported Sunday night that â€œIndia will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets.â€ The publication cited an unnamed senior government official who claims to have direct knowledge of the plan. He said that bill â€œwould criminalise possession, issuance, mining, trading and transferring crypto-assets.â€
According to the official:
Moreover, officials are confident that the bill will be enacted into law as Prime Minister Narendra Modiâ€™s government holds a comfortable majority in parliament, the publication added.
Crypto Community Believes There Will Be No Ban
Many people on social media do not believe that India will go through with banning cryptocurrency, however, suggesting that the information provided by Reuters is outdated. They believe that the finance minister, Nirmala Sitharaman, has indicated in her recent interviews that cryptocurrency will not be banned.
Over the weekend, the finance minister talked about bitcoin and cryptocurrency legislation in an interview on India Today. She was asked if India was heading into the zone where it is inevitable that the government will have to come around to the realization that cryptocurrencies are here to stay.
The minister of finance reiterated that a â€œcabinet noteâ€ on cryptocurrency is â€œgetting preparedâ€ and is â€œnearing completion.â€ She confirmed that it will soon be taken to the cabinet.
Noting that the supreme court has commented on cryptocurrency and the Reserve Bank of India (RBI) will make a call on the official digital rupee, the finance minister affirmed:
However, she emphasized that specific rules about cryptocurrencies will be in the cabinet note, which will be â€œready soon.â€
Earlier this month, Bitcoin.com News reported that the finance minister said: â€œThere will be a very calibrated position taken â€¦ We are not closing our minds. We are certainly looking at the ways in which experimentations can happen in the digital world and cryptocurrency and so on.â€
Her statements have given the Indian crypto community hope that India will regulate cryptocurrencies instead of imposing an outright ban.
However, according to Reutersâ€™ most recent report, the senior official said that the plan is to ban private crypto assets while promoting blockchain technology and fintech. He was quoted as saying:
He clarified that the governmentâ€™s moves would be â€œcalibratedâ€ in the extent of the penalties on those who did not liquidate crypto assets within the lawâ€™s grace period.
In the cryptocurrency bill published in 2019, the interministerial committee in charge of drafting the bill recommended â€œjail of up to 10 years on people who mine, generate, hold, sell, transfer, dispose of, issue or deal in cryptocurrencies,â€ the publication conveyed, adding that the official declined to discuss specifics in this area.
Meanwhile, Indian crypto traders are enjoying the crypto boom as the price of bitcoin hit all-time highs several times over recent months. Leading cryptocurrency exchanges in the country have reported record-high trading volumes and numbers of new users. â€œThe money is multiplying rapidly every month and you donâ€™t want to be sitting on the sidelines, a crypto trader named Sumnesh Salodkar was quoted by Reuters as saying. â€œEven though people are panicking due to the potential ban, greed is driving these choices.â€
Do you think India will still ban bitcoin? Let us know in the comments section below.
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