The Indian government is planning to introduce legislation that prohibits cryptocurrency, reports Reuters. The law would impose fines on anyone who trades, mines or even maintains cryptocurrency. The government has a comfortable majority in parliament, which gives the proposal a good chance of becoming law.
This would make India one of the most hostile cryptocurrency jurisdictions in the world. China, for example, has imposed a number of restrictions on cryptocurrency trading and mining, but has not entirely banned cryptocurrency ownership.
The legal status of cryptocurrency has been the subject of controversy in India in recent years. In 2018, India’s central bank banned Indian banks from providing financial services for cryptocurrencies, hampering the growth of the country’s cryptocurrency economy.
Last year, India’s Supreme Court lifted the ban, triggering an increase in Indian interest in cryptocurrencies. A cryptocurrency exchange, Bitbns, told Reuters that user registrations had increased thirtyfold in the past year.
But the court’s decision left the door open for legislation on the matter. In January, rumors began to circulate that the government was considering a ban.
According to Reuters, the legislation would give cryptocurrency owners six months to liquidate their positions before the ban takes effect.
The authorities seem to be concerned that ordinary Indian consumers may place bad bets on cryptocurrencies and, as a result, lose their savings. Bitcoin’s price rose above $ 60,000 for the first time over the weekend – double its value earlier in the year. But there have been periods in the past when bitcoin has lost more than 80% of its value in a few months.