By Adedapo Adesanya
One of the world’s fastest-growing economies, India, is set to ban and criminalise the use of cryptocurrencies. A bill to make this a reality has already been moved.
This was disclosed by a senior government official, according to Reuters, with the move signifying a potential blow to millions of investors piling into the appealing asset class.
The bill, one of the world’s strictest policies against cryptocurrencies, would criminalize possession, issuance, mining, trading, and transferring crypto-assets, said the official, who has direct knowledge of the plan.
The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency.
However, recent government comments had raised investors’ hopes that the authorities might go easier on the booming market.
Instead, the bill would give holders of cryptocurrencies up to six months to liquidate, after which penalties will be levied, said the official, who asked not to be named as the contents of the bill are not public.
Officials are confident of getting the bill enacted into law as Prime Minister Narendra Modi’s government holds a comfortable majority in parliament.
If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. Even China, which has banned mining and trading, does not penalise possession.
Bitcoin, the world’s biggest cryptocurrency, hit a record high of $60,000 on Saturday, nearly doubling in value this year as its acceptance for payments has increased with support from such high-profile backers as Tesla CEO, Mr Elon Musk.
The latest clampdown on digital currencies echoes that of Nigeria as the central bank in February ordered the immediate closure of bank accounts operated by cryptocurrency exchanges in the country.
In a statement signed by the CBN Director of Banking Supervision, Mr Bello Hassan, the regulator said, “All DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.”
However, the Vice President, Mr Yemi Osinbajo, advised the CBN to have a rethink and consider regulating the rising sector because of its huge potentials.
