Bitcoin drops sharply over fears of ban in India | Financial

Following the Reuters report, which relies on government sources, bitcoin dropped to $ 54,733.50 and other digital currencies also declined. Ethereum has been losing ground for some time now.

Bitcoin, on the other hand, has become worth a lot more in recent days. On Saturday, the twelve-year-old bitcoin coin hit a record high of $ 61,655.59 each.

Shortly after this sharp decline on Monday, the largest crypto currency recorded more than 5% loss at $ 56,686.

In addition to regulations for digital coins, India would propose a law to ban the possession of crypto coins and impose fines on anyone who trades in the country, a senior government official told Reuters.

That would directly affect millions of Indians who have become interested in the highly popular investment.

Trade in

This Indian ban is in line with an earlier government announcement in January. It hinted at banning currencies such as bitcoin, while at the same time the government presented measures to prop up its own currency in corona time.

There may be a transition period of six months with the ban, according to Reuters. Investors are then given time to sell assets.

After the report, many Indian investors responded with surprise: it seems impossible to implement a total ban, they say, and something that the government would not want to do either.

Despite the exchange rate loss on Monday, bitcoin has recorded a 95% increase this year.

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