The Indian government could soon make owning cryptocurrencies within its borders illegal, according to a report by Reuters.

The ban, which is currently being mulled over if the report is to be believed, would make the trading, mining, transferring and even possession of any form of cryptocurrencies illegal, making it arguably the strictest law regarding digital currencies in the world.

Reuters’ unnamed government source on the forthcoming ban said that if the law passed, citizens in India would have roughly six months to liquidate their crypto positions, but it remains to be seen what kind of punishment would await them if they do not.

While unconfirmed, there have been moves for 10-year long prison sentences for those who are involved in crypto-related offences. As such, the Indian government is expected to push for the maximum penalty it can.

As for why India is pushing for these sweeping bans, it appears as if it wants to punt its own cryptocurrency to be used instead of privately owned ones. While the ethics of such a move are questionable, the financial motivation is clear, especially given the size of the country’s population, the penetration of mobile and the general appetite for technology in regions where it is easily accessible.

That said, how crypto owners and traders would feel about interacting with a government-owned coin after the same institution banned all other forms of digital assets, remains to be seen.

This is not the first time that cryptocurrencies have come under the spotlight in India, with its central bank attempting to ban the use of Bitcoin in 2018. Thankfully, the Supreme Court overturned the decision last year, so if such a law passes this time around, hopefully the Court can step in once again.

Either way, if passed, it would set a dangerous precedent as several governments have casted doubts over cryptocurrencies in recent years.

[Image – Photo by André François McKenzie on Unsplash]