Jakarta, CNBC Indonesia – Existence cryptocurrency or crypto commodities will be banned in India. The Bollywood State Government will propose a law to prohibit it, including fines for anyone who carries out trade transactions to hold it as a digital asset.
This news was leaked by a senior Indian government official, who also stated that the bill would criminalize ownership, mining and transfer of crypto assets.
He added that if the bill will give crypto currency holders 6 months to liquidate, after which a penalty will be given to those related to ownership to mining.
Previously, a government panel in 2019 offered an option of imprisonment of up to 10 years for people who carry out mining activities, hold, sell, transfer, issue or deal in cryptocurrencies.
But officials refused to comment on the existence of a prison sentence in the new bill, saying only that discussions regarding the rules were in the final stages.
The official also added that he believes the bill will run smoothly to be passed, because Prime Minister Narendra Modi’s government holds a majority vote in parliament.
However, the Indian Ministry of Finance has not yet responded to a request for comment on the draft law.
If the bill is passed, India will be the first largest economy in the world to make trade cryptocurrency illegal. This was not done even by China, which only banned mining and trade.
Although there are plans the ban does not make the Indian community stop using cryptocurrency. The industry estimates that transaction volumes have increased significantly and that there are 8 million investors holding 100 billion rupees or IDR 192.7 trillion in crypto investments.
The Chief Executive of Crypto-Exchange Bitbns, Gaurav Dahake, said that last year user registrations and cash inflows had increased by 30 times. Meanwhile, the oldest exchange in India, Unocoin, just had 20 thousand new users in January and February.
The Indian government has long wanted a ban on cryptocurrency and some high-ranking officials even refer to the currency as a Ponzi scheme. In line with plans to create its own digital currency.
This month, however, Prime Minister Nirmala Sitharaman began easing investor concerns. He said he would look for ways to conduct experiments in the digital world and cryptocurrency.
“I can only give you a hint. We are not closing our minds, we are looking for various ways for experiments to occur in the digital world cryptocurrency. There will be a calibrated position, “he said.
For information, several digital ‘currencies’ that are included in the popular crypto category include Bitcoin, Ethereum, Rippple, and Tether.
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