Reuters: Indian government proposes to consider holding cryptocurrency as illegal! Finance Minister clarifies: Not that strict

Reuters reported today that India is set to introduce the world's strictest cryptocurrency ban. However, according to local media in India, the actual situation seems to differ from Reuters' report.

The Strictest Cryptocurrency Ban?

Reuters reported today that the Indian government is considering imposing the world's strictest cryptocurrency ban, defining all activities related to private cryptocurrencies (including Bitcoin) such as holding, issuing, mining, trading, and transferring as illegal criminal activities, while simultaneously establishing a framework for an official digital currency. The bill will provide cryptocurrency holders with a six-month liquidation period, after which fines will be imposed.

The news has caused concerns in the cryptocurrency market. As one of the world's major economies, India's cryptocurrency ban is expected to have a certain degree of impact on the market. Reuters even wrote in its report:

"If the bill becomes law, India will become the first major economy to define 'holding cryptocurrency' as an illegal activity, even China does not define holding crypto assets as illegal."

However, according to reports from local Indian media, the reality seems to differ from Reuters' report.

Indian Finance Minister: Not a Complete Ban

According to a report by The Times of India, Indian Finance Minister Nirmala Sitharaman stated in a television interview that the so-called cryptocurrency ban is not about closing all cryptocurrency windows but about partial control and regulation.

"We will allow people to use a certain amount of window to experiment with blockchain, Bitcoin, or you may want to call it. Cryptocurrencies and fintech that depend on such experiments will continue to provide windows, we will not close them all. Details will be disclosed in a cabinet note soon."

It appears that India's cryptocurrency regulatory bill may not be as strict as described by Reuters. However, the government's stance on cryptocurrency regulation is indeed not very clear. Some believe that an open attitude should be maintained towards new technologies and asset classes, while others consider Bitcoin to be a massive bubble with no intrinsic value, and since cryptocurrencies are often used for money laundering, terrorist financing, and other illegal activities, they should be strictly regulated. Nonetheless, it is important to avoid excessive speculation, panic, or selling behavior until the Indian government presents the final regulatory framework.