India proposes a complete ban on cryptocurrencies: 10-year jail term for anyone dealing in cryptocurrency

India proposes a complete ban on cryptocurrencies: 10-year jail term for anyone dealing in cryptocurrency

According to local financial news agency BloombergQuint, Indian lawmakers reportedly proposed 10-year prison sentence for persons involved on crypto trading.

The proposed crypto regulation is a part of the draft bill “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” which makes cryptocurrency completely illegal in India.

The imprisonment is related to those who mine, generate, hold, buy, sell,  dispose, issue or deal cryptocurrencies directly or indirectly in the country.

The main aim of this bill is expected to control the tax evasion and the use of cryptocurrency as black money. It is however quite debatable regarding the authenticity of the facts, crypto is being used in those activities.

According to The Block, If this proposed India’s bill is passed then the cryptocurrency holders are required to  declare their crypto assets and dispose of them within 90 days.

Anyone failing to follow the new rule will be considered as  “cognisable and non-bailable,” leading to a 10-year jail sentence.

Cryptocurrency has been banned in India for a long time. The first ministerial consultations on bill banning in India started in April 2019, the new proposed bill intends to ban cryptocurrency in the country completely.

This news was criticized by many influential crypto personalities through their twitter accounts.

Ran NeuNer, CNBC host and famous crypto trader said, this was a stupid move.

Ran NeuNer, CNBC host and famous crypto trader about India's new law

Similarly, Anthony Pompliano, founder of Morgan Creek Digital, also Analyst and crypto expert states his optimistic nature by stating,

Anthony Pompliano, founder of Morgan Creek Digital about India's ban



Changpeng Zhao, CEO of Binance,  shared similar views as well who tweeted,

Despite this news, crypto enthusiast are hoping hoped for positive signs in the industry after the government formed a new committee to formalize the crypto trade.

Although several media houses and news outlets have been circulating the complete ban of cryptocurrencies in India, India’s Central Bank, Reserve Bank of India (RBI) claims that there has been no information that supports the viewpoint of a complete ban of cryptocurrencies.

The Central Bank claims that it has never opined in favor of or against the ban of cryptocurrency. The Bank is quite confident about not having any sort of meetings or no communication with the Central Government nor any of its stakeholders on the cryptocurrency issue and hasn't received any copy of the bills.

This act is quite surprising to find out the ignorance in government not consulting the RBI for addressing the crypto regulations in the country.

Further India is also participating in the upcoming G20 summit where the issue of cryptocurrencies along with their regulations will be the main topic of discussion among the countries.

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