10 Years Jail For Using, Selling Cryptocurrency In India; Govt. May Soon Launch India’s Own Digital Currency
India is all set to do the unthinkable: Cryptocurrencies like bitcoin can be totally banned in India, and anyone using or selling or mining them can be jailed for 10 years.
On the other hand, India’s own cryptocurrency can be launched soon.
India Proposes Jail For Cryptocurrency Usage
A high-level committee headed by Economic Affairs Secretary Subhash Chandra Garg has been working on creating a policy for cryptocurrency in India
Now, the committee has drafted a policy named, “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019”.
The highlight of this draft is that, any Indian found selling, buying or mining and dealing with any cryptocurrency will be jailed for 10 years.
Cryptocurrencies such as Bitcoin and others would be totally banned in India as well, and usage of cryptocurrencies will be a non-bailable offense.
This will make cryptocurrencies as illegal entities, and anyone dealing with them as criminals.
Why Will Cryptocurrency Declared As Illegal?
Income Tax Department and the Central Board of Indirect Taxes and Customs (CBIC), along with other Govt. bodies have made indepth research and calculations, and have found that bitcoins and other cryptocurrencies are increasingly used for money laundering within and outside India.
The money funneled via bitcoins and other cryptocurrencies has no trace whatsoever, and Govt bodies are not able to monitor its origin and destination.
Cryptocurrencies such as bitcoin and etherium are based on blockchain technology, and uses cryptography for security, and massive networks of computers are used to mine them, sell them, buy them.
No central authority has control over any cryptocurrency, and basically, it’s works beyond the existing financial systems of the world, with no law governing its usage.
India’s Own Cryptocurrency Is Coming Up?
The draft policy on cryptocurrency also proposes India’s very own cryptocurrency, which will be a sort of Digital Rupee.
An official said, “A decision on the launch of Digital Rupee would be taken after consulting the Reserve Bank of India (RBI)”.
This unique blockchain based cryptocurrency can be fully regulated by RBI, and based on the same blockchain technology which powers other cryptocurrencies such as bitcoins and etherium.
We will keep you updated, as more details come in.