Sources say the Indian government may ban cryptocurrencies by imposing fines on transactions or owners

According to CNBC, a senior government official recently told Reuters that India is close to proposing a law banning cryptocurrencies that would fine anyone who trades in or even holds such digital assets in the country.

The official with direct knowledge of the plan also said that the bill, one of the strictest guidelines for cryptocurrencies in the world, would make it a crime, issue, mine, trade and transfer cryptoassets.

If the bill is passed, India will become the first major economy in the world to declare it “illegal to hold cryptocurrencies.”

The biggest potential risk for digital currencies: government regulation, it seems, is looming.

On the afternoon of April 18, Reuters reported that the Indian government would ban cryptocurrencies and impose penalties on those who trade or even hold such assets in the country. The Indian government will define any act of asset encryption as a criminal act.

Photo credit:pexels

According to a recent report by Reuters, the bill may be in the works, and cryptocurrencies will face the strictest legal regulation in India.

India is not the only country in the global market that has gone after digital currencies. Turkey will ban crypto payments from April 30, and Morocco is expected to follow. Separately, expectations of tighter regulation are heating up after it was revealed that the US Treasury is accusing several financial institutions of using cryptocurrencies for money laundering.

On the evening of April 18, when talking about the supervision of cryptocurrencies, a senior official of the People’s Bank of China said that it is studying the regulation rules of Bitcoin and Stable Currency, and that any digital currency must be subject to strict supervision in the future.

That same morning, digital currencies suffered a bloodbath, with Bitcoin at one point falling below $52,000 per coin, down more than 15% on the day. Ethereum, XRP, EOS and other digital currencies plummeted across the board. Perhaps the main reason for the avalanche of digital currencies today is the regulatory attitude of governments around the world.