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- Investors can be given three to six months to withdraw their investments before the cryptocurrency is banned.
- Proposal to have cryptocurrency in digital currency bill, sell, mining, transfer and make its transaction a punishable offense
Worldwide, the practice of cryptocurrencies like Bitcoin, Litequin and Ethereum has increased in recent years. Actually, investment in digital currency has led to tremendous profits. Seeing the tremendous returns of virtual currency, Indians have also invested heavily in them. But now the government is going to enact legislation to ban cryptocurrency.
You will get a chance to sell cryptocurrency before ban
Investors can be given three to six months to withdraw from the cryptocurrency before it is banned. But investors will have to pay a heavy penalty to withdraw money by selling their virtual currency. It has been arranged in the Digital Currency Bill, 2021, which will be introduced in the budget session of Parliament.
Digital currency bill is not finalized
The Digital Currency Bill 2021 has not been finalized. The purpose of this bill is to prepare a legal way to bring digital currency through RBI. According to the Bulletin of the Lok Sabha Secretariat, there is an ongoing exercise to ban private cryptocurrencies in the country. However, according to sources, the use of cryptocurrency will be allowed for research etc.
Keeping private cryptocurrency would be a crime
According to media reports, the government has decided to ban all private cryptocurrencies and trading exchanges. The Digital Currency Bill 2021 proposes possessing, selling, mining, transferring private cryptocurrencies and making its transactions a punishable offense. If found guilty under this law, there will be a provision for heavy fine or imprisonment or both.
Suggestions should be sought from the community on the bill
Sumit Gupta, founder of the cryptocurrency exchange CoinDCX, says the government should talk to all parties before passing the law. He said that the draft of the proposed bill has not been released at the moment. He says the bill should also include suggestions from the cryptocurrency community.
Investment of $ 24 million in 2020
According to analyst firm Venture Intelligence, $ 2.4 million worth of cryptocurrencies were bought in the country last year. In 2019, when the economic growth was sluggish, only $ 5 million was invested in virtual currency here. With the opening of several crypto exchanges in the last few years, crypto trading in India has taken the form of a formal sector.