India Proposes 10-Year Jail Term for Cryptocurrency Use: Bloomberg Quint

Here’s another news which is bound to create panic among the Indian cryptocurrency investors! According to a report by the Bloomberg Quint, India has proposed a jail term of one to ten years for those who mine, hold or transact cryptocurrencies. The report says that the recommendation is part of the draft Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019.

The draft bill has purportedly proposed a penalty along with a jail term of up to ten years for those who deal with cryptocurrencies in any form. In addition, any offence related to these activities would be cognizable and non-bailable. The prison sentence and fine will be decided on culpability of the accused, actual and intended gain and loss, repetitive nature of offence and harm caused to the system. The proposed penalty is thrice the loss caused to the system or three-fold gains made by the ‘accused’ whichever is higher!

Furthermore, any person holding cryptocurrencies, will have to declare and dispose it off within 90 days from the date of commencement of the Act. An appropriate regulator may also be appointed under the Act.

Surprisingly, the report also talks about the introduction of an official digital rupee, in consultation with the Reserve Bank of India.

The news is another blow to the Indian cryptocurrency community which has been urging the government to have an open outlook towards cryptocurrencies. Let’s hope the government takes a more open and global approach even if an ‘expert’ committee which does not understand cryptocurrencies has indeed prescribed a ban on the asset class.

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