Cryptocurrency Transactions Are Now Punishable For Up To 10 Years In India
Cryptocurrency is a digital currency format in which a number of encryption techniques are used to regulate the generation of units of currency and verify the transfer of the same. As per latest news, any person in India found dealing in cryptocurrencies is liable to serve 10 years in prison. This penalty will be applicable to all those who “generate, mine, store, sell, transfer, dispose and issue” any forms of cryptocurrencies, directly or indirectly. Also, besides making it completely illegal, the bill associated with the proposal will make the holding of cryptocurrency a non-bailable offence.
The statement was published in a proposal in the draft of Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019. This is an extremely bashing news for those who were expecting the legalization of Bitcoins and other cryptocurrencies. Moreover, a lot of cryptocurrency trading platforms in the country will face a huge setback from this proposal, since they have been waiting for a favoured decision from the government’s side.
The panel drafting the bill is being led by the Secretary of Economic Affairs, Subhash Chandra Garg. Furthermore, the panel consists of members from the Securities and Exchange Board of India (SEBI), in addition to representatives from investigative agencies and Central Board of Direct Taxes (CBDT). Reports state that strict laws would soon be implemented to deal with people involved in the trade of cryptocurrency. Also, sources reported that India is likely to have its own digital currency.
The article quotes that “If any conduct is punishable under any other law, this Act will be in addition to, and not in derogation of such law”. Currently, Bitcoin is the largest cryptocurrency in the world. As mentioned before, the introduction of a new cryptocurrency, speculated to be called the “Digital Rupee” will drastically change the way cryptocurrency dealings are made in the country. Only the future can guarantee the viability of this decision.