India has the potential to become a thriving hub for crypto-innovation according to the Cryptocurrency start-ups in India.
A campaign has been initiated to lobby the government to reconsider its proposed ban on cryptocurrencies.
A High-level committee suggested that all the private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India.
The government’s stand on cryptocurrency has confused stakeholders in the industry, as some of the arguments forwarded by them, defeats the very purpose of the currency.
As a matter of fact, many experts believe that a bill banning cryptocurrencies is highly unlikely for now.
To be sure, the current proposal has not been cleared at the Union cabinet level and will not be tabled in the Parliament till it is cleared.
Finance Minister, Nirmala Sitharaman, said that while an Inter-Ministerial Committee will study the issues and launch a new crypto bill, all private cryptocurrencies will be prohibited in India.
This however excludes any virtual currencies issued by the government.
It was a clear reiteration of the government’s earlier stance that cryptocurrencies are not considered legal tenders in the country.
One of the biggest questions in the minds of Indians holding cryptocurrencies is if they should sell their crypto investments before the Indian government bans them.
As per reports, the government is likely to give investors some time to liquidate their cryptocurrency holding.
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