India May Ban Cryptocurrencies Lacking Government Approval

Cryptocurrencies may soon have to be approved by the Indian government for investors to hold or trade them on exchanges, according to a Reuters report that cites a source in the know.

Such a requirement would likely make hundreds of digital traders unavailable for the Indian crypto community.

Not complying with the stringent rules will result in penalties, the source says:

“Only when a coin has been approved by the government can it be traded, else holding or trading it in may attract a penalty.”

The long-awaited cryptocurrency bill is likely to be introduced during the winter session of the parliament.

While the government has reportedly backtracked on its plan to impose a blanket ban on holding, trading and mining crypto, it appears to be far from making a complete U-turn.

A government official cited by Reuters that India might clear the way for a central bank digital currency while prohibiting privately-issued coins.

As reported by U.Today, Reserve Bank of India Governor Shaktikanta Das recently reiterated his reservations about cryptocurrencies.

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