An anonymous source claiming to be a senior Indian Finance Ministry official has claimed that the use of crypto assets will soon be completely banned in the world’s second most populated country.
Speaking to Bloomberg, the source claimed that the use of cryptocurrency in all its forms will be banned under a new law expected to soon be introduced in the parliament. Transacting with crypto via foreign exchanges will also be prohibited.
Crypto investors are expected to be given a three-to-six month transition period to liquidate their holdings after the new law comes into effect, the source said.
The official emphasized that crypto assets have been targeted by India’s lawmakers due to their lack of backing from the Reserve Bank of India, or RBI.
In January, India’s parliament introduced ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ for discussion during the ongoing parliamentary sessions on the country’s budget.
The Bill’s purpose was described as creating a facilitative