India finally bans cryptocurrencies and gives investors six months to liquidate their assets
India has become the second country to ban other cryptocurrencies. This comes after the Central Bank of Nigeria instructed all financial institutions in the country to block the accounts of all individuals and entities associated with cryptocurrency transactions.
There was a lot of drama surrounding India’s cryptocurrency position. 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. Government officials hinted in December 2020 that they were considering taxing Bitcoin transactions by up to 18%. Barely a month later, there were rumors that the country was considering banning all private cryptocurrencies.
Apparently, officials were serious about banning cryptocurrencies. Referring to an unnamed senior finance official, BloombergQuint has announced the move by the government. 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 enact a law banning the use of cryptocurrencies in all forms including restricting foreign exchange trading.
On the other side of India’s ban is Kenya, an East African country that has proposed making Bitcoin its basic currency.
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