India purportedly plans to ban cryptocurrency and penalize miners and traders

The plan under operation targets to criminalize all the activities linked with cryptocurrencies and assets. The activities include possession, issuance, mining, trading, and transferring crypto-assets.

The government official gave a statement according to which the virtual currencies will discontinue their legality after the bill is under action. Fine may apply to the parties involving in such activities.

In addition, they are planning to build a structure for an official digital currency. The cryptocurrency holders will get time to liquidate in six months. Hence after this, the government will impose penalties on such participation. With the majority of PM Narendra Modi’s government in the bill may get acceptance and convert into law.

In case of approval of the ban and is in the action, India will become the first country to penalize the possession of virtual currency and declare it illegal. World’s biggest cryptocurrency Bitcoin touched a record of $60,000 on Saturday.

It is gaining a majority of the support from some of the biggest names in the market such as Elon Musk. According to an official, the major concern is to ban cryptocurrency. However, they encourage promoting blockchain which is the mainstay for virtual currencies and gateway to exercise international transactions.

According to the recommendation of the government panel held in 2019, involvement in related transactions and activates would result in 10 years of punishment in jail. However, it is not specifically mentioned in the new bill stating the terms of jail or punishment.

Last month the Reserve Bank of India had given an assertion regarding the risk of financial stability associated with cryptocurrency. They are planning to release digital currency under their regulation with reinforcement of government.

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