After a senior official reported ongoing talks about a bill criminalizing investments in the booming asset class, the prospect of banning cryptocurrencies in India, Asia’s second-most populated nation with a significant number of cryptocurrency supporters, has been brought up again.
According to a Reuters report on the subject, the bill would target digital currency miners and traders in particular, and could seek to impose a 2019 recommendation of a 10-year prison sentence. There was no additional details given.
The news of India’s crypto ban is a hot topic in the crypto community right now. In March 2020, the country’s Supreme Court rejected the Central Bank’s attempt to lift the ban on cryptocurrency, an occurrence that has boosted the country’s trading activity. Despite the latest news of an impending ban, the senior official confirmed that negotiations are reaching a conclusion.
In the midst of Bitcoin’s bull run to $100,000, there is a feeling of disengagement.
The Reserve Bank of India‘s decision to prohibit all types of cryptocurrency activity in the country comes as Bitcoin continues to attract investors and HODLers with its climb to a $100,000 valuation following a weekend burst above $61,000.
According to the details of the new law, the Indian crypto-savvy population will be given a 6-month grace period to liquidate their assets, after which the penalty will be implemented.
Bitcoin holders and investors in India, on the other hand, are unfazed by the impending ban and are riding the market’s bullish trend. Meanwhile, the ban is still in effect.
“If the ban is official, we have to comply,” Naimish Sanghvi, a digital currency trader who began trading last year, told Reuters, referring to concerns about a possible ban. “Until then, I’d rather accumulate and ride the wave than panic and sell.”