A New Law in India Threatens Bitcoin and Cryptos

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India has had a somewhat complicated history with cryptos. In mid-2019, a bill proposed criminalizing possession of cryptocurrencies as well as their use and trading. Luckily for Indian crypto fans, this was shut down in early 2020, which lead to an increase in crypto trading. Indian fans believed that this would spark a change of heart for Indian lawmakers, but they were wrong.

With a new bill threatening to put an end to cryptocurrency use and trading once and for all in the Asian country, everyone who owns Bitcoins or other cryptos is now at risk. If it passes, the new law will effectively put a long-lasting ban on Bitcoin and cryptos, shutting them down from being used in profitable industries such as crypto online merchandise and cryptocurrency gambling.

A Big Blow to Investors, Exchanges, and Many Industries

The proposed law puts all Indian cryptocurrency traders at risk. The government prefers the legal framework to the circular from the Reserve Bank of India released a year or so earlier. Earlier this year, the Supreme Court squashed the 2018 circular from the RBI which prevented banks from dealing with cryptocurrencies.

With legal framework in the picture, it means that the time for Bitcoin and cryptocurrencies in India has simply run out. Despite the RBI circular which tried to ban crypto trading, investors used peer-to-peer platforms to transfer Bitcoin and other cryptocurrencies. After the Supreme Court struck down the circular, exchanges saw a lot of trading action. If the government criminalizes their use, however, exchanges will be killed in just a short time.

If the blanket ban is enacted soon, Indian citizens will be facing harsh penalties for using cryptos in any form.

The planned sentences include fines up to $3.3 million (250 million Rupees) and up to 10 years in prison. Sounds like too much, doesn’t it? There are worse things to do than using cryptocurrencies online.

The Mint doesn’t recommend cryptocurrency investments so if you’re from India and reading this, it’s time to rethink your moves. With legal risk waiting on the sidelines, it’s time to find a way to move your cryptos and Bitcoins ASAP.

The Law Will Decimate Different Industries

So far, crypto traders and owners were able to convert their Bitcoins on exchanges for money or use them in any way they want to. From online Bitcoin purchases to Bitcoin casinos and beyond, Indians have been blessed by the opportunity to use cryptocurrencies in any way they like to. The government was never fond of it and with the new proposed bill, it will shut down and decimate not just the crypto industry in India, but many others too.

While the world is starting to realize the potential of Bitcoin in the wake of the COVID-19 coronavirus pandemic, India is going backwards and banning its use. It’s a shame that the government can’t see its benefits. With the global economy crumbling, cryptocurrencies can be the savior we need. Unless governments decriminalize their use or possession, we’ll still be facing the consequences of the pandemic for a long time.