Discussions for proposed legislation that might inaugurate a blanket ban on digital currency usage in India are within the final stages, consistent with a senior government official.
According to Reuters on Monday, trading, mining, issuance, and possession of crypto assets are expected to be criminalized in India with an upcoming legislative bill.
The official, who wasn’t named, added that the legislation is probably going to form it via Prime Minister Narendra Modi’s majority-controlled parliament.
The officials added that fines would be issued for breaking the law after a 6-month grace period to eliminate cryptocurrency assets, consistent with the report.
Minister of State for Finance Anurag Thakur added earlier on 6th March that the govt was looking into national security risks posed by crypto assets prior to a choice to ban them.
The situation is popping bent to be terribly confusing for stakeholders in India. On the same day as per the Reuters report, the Deccan Herald cited Minister of Finance and Corporate Affairs Nirmala Sitharaman as adding that the govt isn’t getting to completely bar crypto trading.
“From our side, we are very clear that we aren’t shutting all options. we’ll allow certain windows for people to try experiments on the blockchain, bitcoins, or crypto assets,” Sitharaman explained. She added the expansion of the fintech industry depends on such experiments, according to the report.
The government has been saying for months it plans to rein privately use of cryptocurrency while offering the legal framework for India’s Reserve Bank Of India [RBI] to issue its own central bank digital coin.
Earlier in March last year, the country’s Supreme Court overturned the RBI’s 2018 decision to ban financial institutions within its remit from offering services to cryptocurrency-related firms.