India Grants Crypto Holders Reprieve Ahead of Likely Ban: Report

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Policy makers in India will provide a transition period if a proposed ban on the use of cryptocurrencies is passed as expected.

According to a report by Bloomberg on Thursday, a senior Treasury Department official who spoke on condition of anonymity gave Bloomberg cryptocurrency holders three to six months to close their positions.

Those who still hold digital assets after closing the window are likely to liquidate their investments, according to the report.

After that, the use of cryptocurrencies will be banned in all aspects by a new law that will be introduced in the current parliamentary session on the Law on Cryptocurrency and Regulation of the Official Law on Digital Currencies of 2021.

The bill is also intended to provide a framework for the Reserve Bank of India to issue its own digital currency.

While the new law explicitly targets private cryptocurrencies, it will allow certain exemptions to promote the emerging asset class’ underlying technology and its use across the financial sector, as CoinDesk previously reported.