India Will Ban Bitcoin
According to Bloomberg, India's draft bill that will ban Bitcoin and other cryptocurrencies in the region is set to be passed.
India's draft bill to put a complete ban on cryptocurrency transactions will likely be passed, according to a senior Finance Ministry Official speaking to Bloomberg.
The official said that, when the bill gets passed, cryptocurrency holders and companies will have a transition period of between three to six months in order to wrap up their activity. This will affect most of the cryptocurrency companies in India such as coinbase.
As Decrypt reported recently, the country’s junior finance minister, Anurag Thakur, said that there should be more rules & regulation of Bitcoin and other cryptocurrencies in India.
The legislative proposal, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is yet to be formally released. But it appears set to ban all "private cryptocurrencies" in India.
There is one caveat. According to a separate Bloomberg report, the bill may provide some exceptions. These will be “to promote the underlying technology of cryptocurrency and its uses.” But this appears to be referencing blockchain technology as opposed to cryptocurrencies themselves.
India has had a tricky relationship with Bitcoin and cryptocurrency companies in the past. In 2018, the Indian central bank effectively banned banks from working with cryptocurrency companies. This made it exceptionally hard for cryptocurrency companies to continue to operate in the India, with many exchanges shutting down in India.
And now those business that have tried to rebuild are facing huge uncertainty yet again—and, it now seems, an end to the road in India. Many cryptocurrency companies has been pull off from the India market.