Holding and trading cryptocurrencies not approved by the government may soon become illegal in India
Cryptocurrencies may soon have to be approved by the Indian government for investors to own or trade on the stock exchange, according to a Reuters report that cites an informed source.
Such a requirement would likely make hundreds of digital traders unavailable to the Indian crypto community.
Failure to follow the strict rules will result in penalties, according to the source:
Only when a coin has been approved by the government can it be exchanged, otherwise holding or exchanging may result in a penalty.
The long-awaited cryptocurrency bill is expected to be introduced during the winter session of parliament.
While the government has reportedly backed down on its plan to impose a blanket ban on crypto holding, trading and mining, it appears to be far from turning back.
A government official quoted by Reuters that India could pave the way for a central bank digital currency while banning coins issued by individuals.
As reported by U.Today, Reserve Bank of India Governor Shaktikanta Das recently reiterated his reservations about cryptocurrencies.