Q. Will India impose a complete ban on cryptocurrencies, such as Bitcoin?

Replied by Anurag Sharma

Thank you for the question. The notification about banning private virtual currencies or cryptocurrencies, such as Bitcoin, is a step in the government’s
agenda to prepare a framework for an official digital currency. According to various news reports quoting a senior government official (on basis of anonymity), India will propose a law banning cryptocurrencies, fining anyone trading within the country or having possession of these digital assets. Speaking at the India Today Conclave South, on 15 March 2021, the Union Finance Minister Nirmala Sitharaman has said that “India is not shutting-off all options when it comes to cryptocurrency or blockchain and fintech. People would be given adequate windows to experiment with blockchain, bitcoins, and cryptocurrency.”

references/recommended reading:

- Reuters. “India proposes law to ban cryptocurrencies, create official digital currency”, The Hindu, 30 January 2021, Available from: https://www.thehindu.com/sci-tech/technology/india-proposes-law-to-ban-cryptocurrencies-create-official-digital-currency/article33703822.ece [1]

- “FM Sitharaman’s stance on cryptocurrency, blockchain, fintech in India”, Business Today, 15 March 2021, Available from: https://www.businesstoday.in/videos/news-reel/fm-sitharamans-stance-on-cryptocurrency-blockchain-fintech-in-india/433888.html [2]

Date : 16/03/2021