An anonymous source claiming to be a senior official with the Indian Treasury Department has claimed that the use of crypto assets will soon be completely banned in the world’s second largest country.
Speaking to Bloomberg, the source claimed that the use of cryptocurrency in all its forms will be banned under a new law expected to be introduced in parliament soon. Transactions in crypto through foreign exchange are also prohibited.
Crypto investors are expected to be given a transition period of three to six months to liquidate their holdings after the new law comes into effect, the source said.
The official stressed that crypto assets have been targeted by India’s lawmakers for not receiving support from the Reserve Bank of India (RBI).
In January, the Indian Parliament presented “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” for discussion during ongoing parliamentary sessions on the country’s budget.
The purpose of the law was described as creating a framework for a central bank digital currency issued by the RBI and “to ban all private cryptocurrencies in India”.
Sathvik Vishwanath, co-founder and CEO of the major Indian cryptocurrency exchange Unocoin, told Bloomberg that the local crypto industry is eagerly awaiting the details [their] next procedure: “
“If the government bans all cryptocurrencies except those supported by the state, it doesn’t make sense to continue our business in India. But we have to wait and see. “
In March 2020, the Supreme Court of India lifted RBI’s general ban on local banks from providing services to crypto-related companies, thereby legitimizing cryptocurrency companies across the country.
However, India’s Treasury Department proposed laws that would again ban crypto assets nationwide in June 2020.
