India is finally banning cryptocurrencies and giving investors six months to liquidate their assets
India has become the second country to outright ban other cryptocurrencies. This comes after the Central Bank of Nigeria has instructed all financial institutions in the country to block the accounts of all individuals and entities associated with cryptocurrency transactions.
There has been a lot of drama surrounding India’s cryptocurrency stance. In 2018, the Reserve Bank of India issued a ban on all cryptocurrency transactions. The ban was lifted by the country’s Supreme Court in March 2020. In December 2020, government officials hinted that they are considering taxing Bitcoin transactions by up to 18%. Barely a month later and there were rumors that the country was considering banning all private cryptocurrencies.
Apparently officials were serious about banning cryptocurrencies. Citing an unnamed senior Treasury Department official, BloombergQuint disclosed the government’s decision. However, according to the official, the ban would not be imposed overnight, as in the case of Nigeria. Instead, investors would have three to six months to liquidate their investments.
According to the report, the Indian Parliament will continue to enact a law banning the use of cryptocurrencies in all forms, including restricting trade through foreign exchanges.
On the other side of India’s ban is Kenya, an East African country that has proposed making Bitcoin its base currency.
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