The government of India has been uncertain about how to identify with the mass adoption of blockchain and cryptocurrencies around the world when it comes to cryptocurrencies.
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The Indian government has since 2018, been skeptical about deciding to ban cryptocurrency and then backtracking and declaring itself crypto-friendly. This has been going on and on in the past years. A bitter circle that makes the condition of miners and traders in the country very unstable.
An official bill has been submitted on the 15th March 2021, as gathered by Duitocoinnews.com that India wants to scrap cryptocurrencies definitely this Time. The Indian government has reportedly agreed to pass a bill to stop the use of cryptocurrencies in the country.
This bill, if passed, would make it illegal to possess, transfer, trade, make payments, mine, and do anything related to cryptocurrencies. In january, the government decided to ban private digital currencies, a definition that includes Bitcoin according to the country’s regulations.
If the law is passed, users would have six months to liquidate their cryptocurrencies. China has a similar law, which bans trading and mining, but not possession. In India, this would create the first law that could stop the crypto market in the country altogether.
The penalty for holding crypto in India is still not known, In 2019, it was rumored that the penalty for holding cryptocurrencies would be jail, up to 10 years imprisonment.
These are, however, rumors. It is not yet clear what would happen with this new law, if the bill is ultimately passed, Indians would have it wrapped up in six months
Despite this frequent skepticism by the government, according to data from the end of January 2021 an analysis conducted by Bit2Buzz reported a 980% growth in users and 500% growth in volumes on crypto exchanges, after Bitcoin had reached its previous all-time high of $40,000.
The survey was conducted with the participation of major Indian crypto exchanges, including WazirX, Unocoin, CoinDCX, Cashaa, Bitbns, Oropocket, and ZebPay.
As a country of nearly 1.4 billion people with more than 5 million people participating in the crypto market, India is also recorded as the second-largest cryptocurrency nation in Asia after China and the sixth biggest in the world.
As early as November 2020, there were interesting growth figures for cryptocurrency adoption in the country. This was revealed at the time by a report by Arcane Research, which specifically analyzed bitcoin exchange volumes on P2P platforms such as LocalBitcoins and Paxful. On both platforms, volumes had more than doubled in 2020.