India will ban cryptocurrencies, but allow investors to withdraw money – Bloomberg

The Indian authorities adhere to the line of a complete ban on cryptocurrencies, Bloomberg writes, citing a source in the Ministry of Finance. According to him, the ban will come into force gradually, and the transition period will be from 3 to 6 months. At this time, cryptocurrency investors from the world’s second most populous country will be able to get rid of their assets.

The official noted that the central bank does not support cryptocurrencies, so the government decided to ban their use in all forms, including trading on foreign exchanges. The source also said that the ban on cryptocurrencies in India will follow the Chinese model. There, however, only the sale of cryptocurrencies for fiat currency is outlawed, while exchanging cryptocurrencies among themselves is allowed.

The initiative calls for a ban on all “private cryptocurrencies” in India, including Bitcoin. While the law does not currently contain a definition, Finance Minister Nirmala Sitharaman announced this week that it includes all digital currencies that are not government-owned. At the same time, the document lays the foundations for the creation of the digital currency of the country’s central bank.

“If the government prohibits all cryptocurrencies, except for the state, there will be no point in continuing our activities in India. Let’s see, ”said Satvik Vishwanath, CEO of a large Indian exchange Unocoin.

India has a long process of legislative approval with many stages and departments involved. However, there is also an expedited procedure that is expected to be applied in this case.

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