What will happen to your Bitcoins if India bans cryptocurrencies?

An Indian government panel has recommended banning all private cryptocurrencies and a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies, which could signal the end of them in India. Several questions were raised as soon as the news was out and a major one among them was what would happen to the money that Indians have already invested in cryptocurrencies like Bitcoin.

Bitcoin hit its highest level in December 2017 and became a rage all over the world, including India. It is expected that Indians own Bitcoins worth of millions of dollars.

Coming to the recommendation of banning cryptocurrencies, there is no need to panic right now because not all the recommendations become law. You can still sell the cryptocurrencies (like Bitcoin) you own on exchanges that are legal in India.

But there's no problem if you want to hold on to your Bitcoins for a little longer. Just keep yourself updated with the latest news for when the government actually considers banning cryptocurrencies, that will be your brief window to sell your Bitcoins.

If a major economy like India does ban cryptocurrencies, the prices are likely to take a serious hit. Bitcoin prices have already been very volatile especially in 2018 and 2019. In December 2018, Bitcoin was trading at around USD 3,500 compared to its peak price of USD 19,783 on 17th December 2017.