An anonymous source claiming to be a senior Indian Finance Ministry official has claimed that the use of crypto assets will soon be completely banned in the world’s second most populated country.
Speaking to Bloomberg, the source claimed that the use of cryptocurrency in all its forms will be banned under a new law expected to soon be introduced in the parliament. Transacting with crypto via foreign exchanges will also be prohibited.
Crypto investors are expected to be given a three-to-six month transition period to liquidate their holdings after the new law comes into effect, the source said.
The official emphasized that crypto assets have been targeted by India’s lawmakers due to their lack of backing from the Reserve Bank of India, or RBI.
Sathvik Vishwanath, the co-founder and CEO of major Indian cryptocurrency exchange Unocoin, told Bloomberg the local crypto industry are anxiously “waiting for details to come out to determine [their] next course of action:”
In March 2020, India’s Supreme Court overturned the RBI’s April 2018 blanket ban on local banks providing services to businesses dealing with crypto, effectively legitimizing cryptocurrency companies across the country.
However, the Indian Ministry of Finance proposed legislation that would again ban crypto assets nation-wide in June 2020.