7 Million Crypto Holders in India Fear Blanket Bitcoin Ban

Indian is moving to ban all cryptocurrencies despite the lack of backing from India’s Reserve Bank, according to recent reports. 

On Jan 30., a new crypto regulation bill was introduced for discussion in the current budget session.

The Indian parliament, consisting of elected members from both the ruling party and opposition, conducts debates during three sessions in a year. The first budget session of the year took off earlier this month when the Finance Ministry laid out the plans for this years’ spending and tax collection. 

While cryptocurrency did not feature in its financial plan, the new crypto bill will address the crypto legislation with talks of a blanket ban. 

The finance ministry official told the media that the bill would ban all cryptocurrencies except fiat-backed digital currency issued by India’s Reserve Bank.  According to the law, “transaction directly via foreign exchanges” will be prohibited too. 

Investors will be given three-to-six months to unload their positions.

The bill’s summary in the official document included scope for “certain exceptions to promote the underlying technology.” However, the general view of the ministry seems to stand against it.

According to an estimation, 7 million Indian citizens hold cryptocurrencies worth $1 billion. Thus the law may very well cause the prices to drop.

Disclosure: The author held Bitcoin at the time of publication.