The Indian government may soon come with a law which is likely to ban all cryptocurrencies, may look into past transactions but, will provide investors with a window to exit from their holdings.
Even though the proposed law will restrict future transactions, the government may also seek details of holdings and transactions done in the past, the official added.
The industry in the past, has asked for reimbursements, if the government decides to go ahead with the ban.
The Indian government has maintained a strong stance against cryptocurrencies and had proposed The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, ahead of Budget 2021.
The official said that the expert panel has submitted its report, which was followed by “inter-ministerial discussions, meetings held by the Cabinet secretary and submissions by various concerned people on the matter to the government.” All of this will be taken into account before finalising the law.
The recent development is line with last month’s Reuters report which said that a new crypto bill will not only ban digital money but will also fine anyone trading in the country or even holding such digital assets.
This was followed by a Ministry of Corporate Affairs notification which made it mandatory for all companies in the country to disclose their dealings in virtual currency in their balance sheets.
Speaking at the India Today Conclave South on in March, the finance minister said that the government is not shutting all windows for cryptocurrencies, or blockchain, and fintech as yet.
“Central bank digital currency is a work in progress.