The matter of banning or not banning cryptocurrencies in India had been lingering on for more than 2 years. However, the Reserve Bank of India (RBI) had recently submitted a proposal to ban cryptocurrencies in the country for good.
It was decided that the session for deciding the fate of cryptocurrencies in the country will be held at the Lok Sabha. It was also agreed that the final decision around the banning of cryptocurrencies will be announced in May 2021.
Although the decision around cryptocurrencies in the country is still being considered, yet an unknown source has made a shocking claim. According to an unknown source, the use of cryptocurrencies will be completely banned in the country.
The unknown source that has revealed the piece of information has stated that he is one of the senior officials of the Finance Ministry. The source has revealed that once the new law is passed and rolled out, any kind of use of cryptocurrencies in the country will be banned/prohibited.
It has been confirmed that the parliament will soon be announcing its decision around the banning of cryptocurrencies in the country. Once the law is implemented, even transactions through cryptocurrency exchanges will be prohibited in the country.
The unknown source has revealed that the cryptocurrency investors will also be granted a grace period for the transition. It is currently not clear whether it will be 3 months or 6 months that the parliament will grant the crypto-investors to liquidate their crypto-funds.
If the investors fail to liquidate their funds and keep holding onto them, they will be unable to process any further transactions through them. Additionally, the Government of India may also take legal actions against individuals or companies that will be found to have cryptocurrencies in their possession.
The unknown source has mentioned that the main reason behind the targeting of cryptocurrency assets by the lawmakers of India is the lack of backing from the RBI.
It was back in January when the new law was proposed by the Reserve Bank of India (RBI) at the parliament. The name of the new law was dubbed as “The Cryptocurrency and Regulation of Official Digital Currency Bill”.
In the new law, the Reserve Bank of India (RBI) proposed the complete banning of cryptocurrencies in the country. Additionally, the RBI also proposed that it was in the processing of launching the digital rupee. The firm also provided the documentation around the framework of the digital asset and confirmed that the asset would be ready by the end of the running year.
So far, all the cryptocurrency exchange startups in the country have opposed the proposal made by the RBI. They are all of the same views that having CBDC in the country would be useless if the rest of the cryptocurrencies are banned.