As expected, Indian policymakers will provide a transition period if the proposed ban on the use of cryptocurrencies is passed.
According to A report By Bloomberg on Thursday, a senior finance ministry official – speaking on condition of anonymity – said Bloomberg cryptocurrency holders could be given three to six months to close their positions.
According to the report, those who keep digital assets even after the window closes will probably see their investment decline.
Subsequently, the current session of Parliament will prohibit the use of cryptocurrency in all cases by introducing a new law set through the Control of Cryptocurrency and the Official Digital Currency Bill, 2021.
The bill is also expected to provide a framework for the Reserve Bank of India to issue its own digital currency.
The new law explicitly targets private cryptocurrencies, but it will promote its use as a coindesk across certain exceptional asset-class underlying technologies and across the larger financial sector. Previously reported.