India to propose cryptocurrency ban, penalising miners, traders - source

[Fariwala]

NEW DELHI/MUMBAI (Reuters) - India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, a senior government official told Reuters in a potential blow to millions of investors piling into the red-hot asset class.

The bill, one of the world's strictest policies against cryptocurrencies, would criminalise possession, issuance, mining, trading and transferring crypto-assets, said the official, who has direct knowledge of the plan.

The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency. But recent government comments had raised investors' hopes that the authorities might go easier on the booming market.

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Instead, the bill would give holders of cryptocurrencies up to six months to liquidate, after which penalties will be levied, said the official, who asked not to be named as the contents of the bill are not public.

Officials are confident of getting the bill enacted into law as Prime Minister Narendra Modi's government holds a comfortable majority in parliament.

If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. Even China, which has banned mining and trading, does not penalise possession.

The Finance Ministry did not immediately respond to an email seeking comment.


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[TomPluz]

I am getting bored waiting on what India will do on the question of cryptocurrency. Look, if they all want to ban cryptocurrency they better do it tomorrow no ifs no buts. I am sure that the cryptocurrency industry can be better without a country like India which does not understand the potential of this industry to be helping its economy especially its talented young people. Goodbye, India, and please don't come back. This country is getting my nerves.

[Bobcrypto]

You have a good point, they are very much undecided on their move to ban bitcoin. I am beginning to think that India government taken such decision is baseless and that is the reason they are yet to take solid ground on the ban. Many of these developing countries thinks that bitcoin may overtake or weakens their fait currency, hence this unnecessary decisions. Let watch how this ban will play out in the coming days.

[mixing]

I saw another article about this earlier today... If it happens India residents will have just 6 months to sell off their crypto. They could also face jail time just for holding it. Sounds like they are really looking to clamp down on it there, which sucks for the markets!

[sky20]

Today I saw in an Indian newspaper that the Indian Parliament is going to pass a law banning cryptocurrency. If anyone is involved, he will be punished. However, as 70 lakh people in India have invested here, for this reason they give some times to regain their money.

[Freemind]

The government of India can do and say what it wants. Can anyone explain to me how you will know how many citizens have crypto? Those who have never used exchanges with KYC will have no problems, those who have never converted crypto to fiat will have no problems, people who keep their cryptocurrencies in hardware wallets, for example, won't have a problem either. Are they going to send someone from the government to search the homes of all the citizens of India?. In my country we have a saying, "you cannot put doors to the forest", there will always be a way to get in and out.

[sharminsp50]

this is not a good idea