December 4, 2021

In India, the potential ban of the cryptocurrency limit was softened

As Bloomberg reports, the Government of India is considering a proposal that could change the status of digital assets to financial assets. As you know, they are unavailable for small investors.


Some of India are working on a law,Presided by Prime Minister Modi, who will be discussed in the agenda of November 29. New changes will determine the minimum amount for investments in digital assets and will prohibit their use as a legal tender. Note that this is not a final revision.

Previously published description of the draft lawUnderstands that the politicians still have the opportunity to change certain points of the future law. In addition, if "private cryptocurrencies" are prohibited, at the same time, their definition is not given in the document. It is also noted that the new rule will contain exceptions.

AFTER THIS NEWS, MOST PARTICIPANTSIndian market started selling its assets, including Dogecoin and Shiba Inu tokens, which are considered very popular in the country. At some point, both digital currencies on Indian trades fell by 10%. The largest traders, such as Binance and Kraken, did not come across such a pressure of sales.

The Reserve Bank of India has repeatedly stated thatIt considers it necessary to completely prohibit the use of digital currencies, since they can negatively affect the financial stability and high efficiency.

At the same time, the government has not developed a clear position regarding the cryptocurrencies, but the likelihood of taking a tough frame is very high.

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