Rumours of a proposed bill in India that bans cryptocurrency may have been confirmed after Indian blockchain lawyer Varun Sethi posted an alleged first draft of the proposed bill.
The “Banning of Cryptocurrency and Regulation of Official Digital Currencies” bill, which proposes to ban or heavily restrict all cryptocurrency-related activity in India, was leaked this week.
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— Varun | Blockchain Lawyer (@Blockchainlaw91) July 15, 2019
Proposed Bill Targets Entire Crypto Ecosystem
A report from the Economic Times in April 2019 mentioned that the bill had already been examined by a committee of representatives from the Department of Economic Affairs, Central Board of Direct Taxes, Central Board of Indirect Taxes and Customs (CBIC) and other regulatory bodies.
The committee held the view that there has already been an unnecessary delay in taking action against cryptocurrency. This bill if passed will make all crypto related activities including mining and trading illegal in the country, with offenders risking jail time of up to 10 years. An excerpt from the 18-page document reads
No person shall mine, generate, hold sell deal in, issue, transfer, dispose of or use cryptocurrency in the territory of India.
With already strict crypto regulations in place, this is not the first time the government will be accused of planning to completely do away with digital assets in the country.
In what may be the only positive thing the bill hopes to achieve,