India Bans Crypto
India is proposing a law that will ban all cryptocurrencies in the country. It’s unclear whether the new bill includes jail time, but people who trade or even hold the digital assets will face fines. A government panel in 2019 recommended jail time of up to 10 years on people who trade, hold or deal in cryptocurrencies.
An unnamed Indian official said the new bill would give holders of cryptocurrencies up to six months to sell, after which fines will be imposed by the government. If the bill gets signed into law, India will be the first major economy to ban holding cryptocurrencies. China has banned the mining and trading of cryptocurrencies, but they haven’t imposed fines for possession. Officials say they are confident of getting the bill passed into law as Prime Minister Narendra Modi’s government maintains a sizable majority in parliament.
In January, Indian officials called for banning cryptocurrencies, calling them Ponzi schemes, and arguing they need to be banned to protect investors. But despite the threat of a crypto ban, Unocoin, an Indian crypto exchange, added 20,000 users in January and February.
The Indian government has stated their problem is with crypto-assets and not blockchain technology. Interestingly, officials have said they have plans to use blockchain technology to build an official digital currency.
Over 18 countries currently impose regulations on cryptocurrencies — India isn’t the first and likely won’t be the last. Do you think governments should be in the business of regulating cryptocurrencies?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
