| According to a Thursday report by Bloomberg, a senior Financial Ministry official – speaking under condition of anonymity – told Bloomberg cryptocurrency holders were likely to be given a three-to-six month period to close their positions. |
Per the report, those still holding digital assets after the window closes will likely see their investments liquidated.
Subsequently, cryptocurrency usage in all aspects will be banned via a new law set to be introduced in the current parliamentary session via the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
The bill is expected to provide a framework for the Reserve Bank of India to issue its own digital currency.
As reported by CoinDesk, while the new law explicitly targets private cryptocurrencies, it will allow certain exceptions to promote the underlying technology of the nascent asset class and its use across the greater financial sector.