“Should I sell my cryptocurrencies?” and other questions answered on India’s proposed Crypto Ban bill
- With the cryptocurrency bill looming large, consumers have been worried about their investments in
cryptocurrencieslike Bitcoin, Ethereum and others.
- We spoke to industry sources and exchanges to answer your questions, and help you understand if you should sell your Bitcoin and Ethereum investments.
- One of the key takeaways is that you should not panic.
- Read on to find out what you should do in case cryptocurrencies are banned.
AdvertisementOne of the biggest questions in the minds of Indians holding cryptocurrencies is if they should sell their crypto investments before the Indian government bans them.
It is not an easy question to answer as there is little information from the government in this regard as of now. If you are panicking about your investments in Bitcoin, Ethereum, dogecoin and other cryptocurrencies, we are here to answer your questions.
Should I sell my cryptocurrencies?
Panic selling could prove to be counterproductive, especially since we don’t have enough information about the bill.
“Cryptocurrency holders in India should not panic. They should wait for the government to reveal all the details about what is being banned or not, and then take a decision accordingly,” said Nischal Shetty, co-founder of WazirX.
“Consumers need not panic and sell their crypto investments. CoinDCX has put in safeguard measures to ensure investors are protected, and we have the liquidity to help consumers liquidate their investments if they want to,” said Sumit Gupta, co-founder and CEO of CoinDCX.
“Consumers who are holding cryptocurrencies should not sell their investments in haste. The information in the public domain is incomplete, the details are still not finalised and ban may not materialize,” said Arjun Vijay, co-founder of Giottus Cryptocurrency Exchange.
What happens if the government bans cryptocurrencies?
The government will likely give investors some time to liquidate their cryptocurrency holdings, so you should not worry about it right now.
“Even if the government bans cryptocurrencies, it will likely give some time to Indian investors to liquidate their assets,” Vijay further added.
Will the government ban holding cryptocurrencies in foreign countries?
The details are not available right now, so it is suggested that you wait and watch for official information from the government.
Can I invest in cryptocurrencies via the Liberalised Remittance Scheme?
It might be possible to invest in foreign countries taking advantage of the Liberalised Remittance Scheme that allows resident individuals in India to invest up to $2,50,000.
However, in view of absence of details about the crypto ban, you should adopt a wait and watch approach.
Will banks freeze my account if I invest in cryptocurrencies?
AdvertisementThis is unlikely as your bank account and cryptocurrency investments are not related.
Will I be able to withdraw money from cryptocurrencies into my bank account?
As things stand right now, there is no restriction on selling cryptocurrencies and withdrawing those funds into your bank account. Even if the government bans cryptocurrencies, it is likely to give some time to investors to liquidate their assets.
“Consumers need not worry about cashing out their investments and receiving money in their bank accounts,” Gupta added, assuring that your money will not go down the drain.
According to Shetty, millions of Indians hold over INR 10,000 crore in total in various forms in cryptocurrency investments. The government will give them a way out even if it bans cryptocurrency trading.
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