Did you invest in Bitcoin? Or any other Cryptocurrency? If yes, then the worry is real. And now you are wondering if the new Cryptocurrency Bill 2021 will ban this digital currency.
Don’t worry! You are not alone. Around 7 million Indians are a part of blockchain technology, contributing about $1 billion. That’s true! It’s 10 crore rupees. And do you think the government is ready to face another backlash by making you all lose that much money? Let’s find out.
The Cryptocurrency Bill 2021 in India
Recent government announcements have created hype and many speculations around blockchain technology’s future in India. They say the proposed Cryptocurrency bill 2021 is designed to ban all those private digital currencies. However, the bill is still a proposal and will get an introduction in the parliament soon. Once it reaches a clearance, it will bar all individuals, exchanges, traders, and others from dealing with cryptocurrencies legally. And any violation may attract strict legal actions.
But that’s just a proposal right now. And this isn’t the first time government came up with the idea of this ban.
- In 2018, RBI sent a circular to all entities. That was an advisory for all financial entities for not delivering any service or dealing with virtual currencies.
- In 2019, a government committee provided a suggestion to ban all private digital currencies. The suggestion also included heavy penalties and 10-year imprisonment for those dealing in cryptocurrencies.
- In 2020, Supreme Court acted against the government’s will. It allowed banks to handle transactions from exchanges and traders involving cryptocurrencies, overturning RBI’s circular.
- In 2021, the government proposes a new bill, “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.”
Besides the ban, another part of the bill suggests a new, regulated Cryptocurrency in India. Approval to the draft will allow RBI to create, monitor, and control Central Bank Digital Currency (CBDC) just like INR.
So, Should You Still Buy and Sell Cryptocurrency?
As of now, the bill is still in draft, and you are safe until it gets approval. And there’s still a lot hidden under the cover to see what it will exactly ban and allow. This means you are free to involve in crypto trading until the next big update from the parliament.
Even if the government gets a nod to ban private virtual currencies, you might get some time to liquidate your investments. After all, 7 million and $1 billion aren’t small numbers.
In short, the answer to “Should I sell my Cryptocurrency?” is “Not immediately.” Avoid creating any panic, and if you want to play safe, you can prepare a withdrawal strategy. This, definitely, should have a reinvestment plan to keep your funds growing. Drop your views on this government’s move against private cryptocurrencies. Stay tuned for the latest Cryptocurrency news. Subscribe now.