The prospect of a fresh ban on cryptocurrencies in India has sent a military of crypto investors scrambling to consider ways to guard or liquidate their holdings. This, because the government appears to be in final stages of bringing during a new legislation governing Bitcoin and other such tokens in India.
On ThursdayIndia will plow ahead with an entire ban on investment in cryptocurrencies via domestic and foreign exchanges, after giving investors a transition period of three-to-six months. the complete contents of proposed cryptocurrency bill aren’t publicly domain. While there’s no official data available, the three largest crypto-exchanges—WazirX, Unocoin and CoinDCX—claim that there are anywhere between 60lakh to at least one crore cryptocurrency holders within the country with holdings of over Rs 10,000 crore.
These crypto investors are watching options starting from ‘self-custody wallets’ to transferring and selling their tokens. To make certain , provisions included within the upcoming legislation, once detailed, will eventually guide these choices.
The contours of the Cryptocurrency bill are yet to be introduced to the publlic, though it is likely to bar Indian companies and individuals from using digital currencies. Presently, the regulator bodies like Reserve Bank of India and Security and Exchange Board of India do not have any legal framework to directly regulate cryptocurrencies. According to media reports, a cryptocurrency bill will pave the way for the Reserve Bank of India (RBI) to create a “facilitative framework” to issue an official digital currency. In a booklet on payment system printed on January 25, the RBI had hinted that it was exploring ways to issue an official digital currency in India.