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Proposed Law in India Would Imprison Anyone Who Uses Cryptocurrency


steven36

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Draft bill proposes 10-year prison term for dealing in cryptocurrency

 

https://s7d6.turboimg.net/sp/93466d665df76592eaf1291ec6cb51bc/c01d.jpg

 

A cryptocurrency is a digital or virtual currency that uses cryptography for security and is generally based on blockchain technology, a distributed ledger enforced by a disparate network of computers. Bitcoin is the most popular cryptocurrency in the world.

 

HIGHLIGHTS

  • A draft bill has proposed 10-year jail term for people dealing in cryptocurrencies in India
  • Besides making it completely illegal, the bill makes holding of cryptos a non-bailable offence
  • A cryptocurrency is a virtual currency that uses cryptography for security and is generally based on blockchain technology

 

Holding, selling or dealing in cryptocurrencies such as Bitcoin could soon land you in jail for 10 years.

 

The "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019" draft has proposed 10-year prison sentence for persons who "mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.

 

Besides making it completely illegal, the bill makes holding of cryptos a non-bailable offence.

 

A cryptocurrency is a digital or virtual currency that uses cryptography for security and is generally based on blockchain technology, a distributed ledger enforced by a disparate network of computers. Bitcoin is the most popular cryptocurrency in the world.

 

Given the high chances of cryptocurrencies being misused for money laundering, various government bodies such as the Income Tax Department and the Central Board of Indirect Taxes and Customs (CBIC) had endorsed banning of cryptocurrencies.

 

The draft bill for banning cryptocurrency has been in the works for some time with Economic Affairs Secretary Subhash Chandra Garg leading the exercise.


While strict law would soon be in place to deal with people indulging in trade of cryptocurrency, India is likely to have its own digital currency.

 

"A decision on the launch of Digital Rupee would be taken after consulting the Reserve Bank of India (RBI)," said an official.

 

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Which is funny as last time I checked, it was not officially banned there.

 

Anyway, I am saying this from years, it's attractive till it's not regulated, when it gets regulated everywhere in the world, not many would like to use it, at least not conventionally how they liked it.

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India traditionally has very strict monetary policies, and I'm unsure of the rationale for much of it. This is just the latest in a long string of capital control policies and at least in my opinion would not see much replica regulations internationally.

 

The bummer tho' is that with over 1 billion people and on its way to becoming the 5th largest economy by GDP, this bill, if it passes, would be bad news for cryptocurrency usage and valuation.

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