The Indian government is developing a bill to ban cryptocurrency in the country and use it as a mechanism for transactions, TASS reports, citing the Hindustan Times.

According to its sources, the bill provides for criminal liability for the possession, release, receipt, trade, and transfer of cryptoassets. 

Sources noted that if the document is approved, India will become the first major economy to make cryptocurrency turnover illegal.

According to them, the bill is in line with the policy of the Indian government, which called in January for a ban on bitcoin when laying the foundation for an official digital currency and recognized it as an ineffective and unreliable instrument for financial transactions. According to the authorities, bitcoin can be used in various illegal schemes and is highly volatile.

The bill will give cryptocurrency holders up to six months to liquidate their assets, after which fines will be levied