An bearding source claiming to be a senior Indian Finance Ministry building official has claimed that the utilize of crypto assets will presently be completely banned in the world'southward second nigh populated country.

Speaking to Bloomberg, the source claimed that the use of cryptocurrency in all its forms will exist banned nether a new law expected to soon be introduced in the parliament. Transacting with crypto via foreign exchanges will also exist prohibited.

Crypto investors are expected to be given a three-to-six calendar month transition period to liquidate their holdings afterward the new law comes into effect, the source said.

The official emphasized that crypto assets have been targeted by India's lawmakers due to their lack of bankroll from the Reserve Depository financial institution of Republic of india, or RBI.

In January, India's parliament introduced 'The Cryptocurrency and Regulation of Official Digital Currency Nib, 2021' for discussion during the ongoing parliamentary sessions on the country's budget.

The Bill's purpose was described every bit creating a facilitative framework for a central bank digital currency issued by the RBI, and to "prohibit all private cryptocurrencies in India."

Sathvik Vishwanath, the co-founder and CEO of major Indian cryptocurrency exchange Unocoin, told Bloomberg the local crypto manufacture are anxiously "waiting for details to come out to determine [their] side by side course of action:"

"If government goes ahead with banning all cryptocurrencies, except the i backed by the country, it will not brand sense to continue our business in India. Simply we'll have to wait and watch."

In March 2020, Bharat'due south Supreme Court overturned the RBI'southward April 2018 blanket ban on local banks providing services to businesses dealing with crypto, effectively legitimizing cryptocurrency companies across the land.

Nevertheless, the Indian Ministry building of Finance proposed legislation that would once more ban crypto avails nation-wide in June 2020.