The Indian Government is looking to propose a ban on cryptocurrency after multiple warnings years before. This law would prohibit the ownership, mining and trade of these assets. The law would be punishable with a fine. If the government goes through with this ban it would become one of the strictest laws on cryptocurrencies in the world. Even stricter than China, which has banned the mining of cryptos but still allows possession and trade.
The new law on cryptocurrency is not public yet, but it is hoped to not be a direct ban but instead holders, traders and miners of the cryptos would have 6 months to liquidate their assets. This would help people withdraw their money before any form of punishment or loss. Any way this law is put through it will hurt the newly booming economy of India.
The main reasons for this ban are that the Indian government is aware of the decentralized way of handling money which could cause financial instability. In addition the high volatility and crime within cryptocurrencies is potentially harmful.
Yet illegalizing this might not be the best option. Many entrepreneurs and private firms have stated that India must keep up with the ever changing tech world. Additionally many experts also believe that this ban will be more harmful to citizens seeking personal gain than the unregulated use of trading. Also restraining a new market with great economic potential is hurtful to a growing economy like India. Furthermore it is believed that crypto trade is inevitable and the ban would just encourage illegal trade and not prevent it. More information will become available as time progresses and the Indian government comes to a decision.
