A complete ban on investing in digital assets is reportedly coming — with trading on foreign exchanges prohibited.
The walls are closing in on Indian crypto owners — with a Bloomberg Quint report claiming that a complete ban on investing in digital assets is going to go ahead.
A senior finance ministry official told the news outlet that a new law is going to be introduced in parliament and transacting on foreign crypto exchanges will also be prohibited.
It appears that those who currently own Bitcoin and other cryptos will be given up to six months to liquidate their investments.
The report doesn’t mention the type of punishments that those who break the law might end up expecting. Controversial proposals that were previously drawn up, only to be struck down by the Supreme Court, suggested that there could be a jail term of up to 10 years for those who were caught trading.
New restrictions would serve as a hammer blow to India’s burgeoning crypto sector, which had enjoyed something of a renaissance during the coronavirus pandemic.
It doesn’t appear that the world’s second-most populous country is planning to turn its back on the technology that underpins digital assets. It’s believed that India is going to start work on developing its own central bank digital currency.
Local exchanges have reacted with dismay to the Bloomberg article, with some openly admitting “it will not make sense to continue our business” in the country if the ban comes into force.