The cryptocurrency ban has spread like a wildfire in the country, within a day the news has taken the internet on the storm. People and investors are panicking about the Crypto ban. The Central government tabled the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the Lok Sabha’s winter session, which is slated to begin on November 29. There are 15-20 million crypto investors in India, who possess a total crypto holding of around Rs 40,000 crore ($5.39 billion) but the ban news has held down the crypto market. If you are wondering how the possible consequences of this bill will impact your money then, Here's the full report on the Crypto ban rumors which will help you.
1) What’s the purpose of this bill?To to "create a facilitative framework” for the creation of the official digital currency to be issued by the RBI, which has since long been in favor of a ban on cryptocurrency, has raised red flags surrounding the potential use of crypto for illegal purposes, besides the lack of regulations on crypto resulting in limiting RBI’s ability to manage inflation, foreign exchange, and the overall economy.
2) What if the bill gets passed? Will cryptocurrency be banned?If the bill gets passed and a potential ban on crypto. If the bill gets passed in its current form, all private cryptocurrencies, barring a few, would be banned. It is likely to imply that the transactions between the bank and your crypto exchanges will be prohibited. Neither will you be able to convert local currency to buy any kind of cryptocurrency nor be able to liquidate or encash existing crypto investment. The crypto held by you in such cases will be stuck until the ban gets uplifted, or some relief measures like a window period for liquidation might be offered.
3) What will happen to all the cryptocurrency that is in circulation already? In such scenarios, it remains to be seen whether the government gives a window period for crypto investors to liquidate their assets, any subsequent penalty, if any, to be levied on failure to abide by the resolutions and window period, etc.
India is not the first country to ban Crypto before this the nations like China, Nepal, and Russia have already banned and/or restricted the use of cryptocurrencies.