The Indian government will take into consideration the recommendations to ban cryptocurrencies in the country and introduce imprisonment up to ten years for dealing with crypto. This was confirmed by the the Department of Economic Affairs of the Government of India.
The press release confirmed previous rumors that anybody who mines, holds, or sells cryptocurrencies might be punished with a jail term if the new proposal is accepted.
Furthermore, the announcement also confirmed that India also might launch their national coin: “The Group has also proposed that the Government keeps an open mind on official digital currency.”
The authors of the report also proposed to “establish a Standing Committee to revisit the issues addressed in the Report as and when required.”
India Report’s Key Points
- The Committee recommends that all private cryptocurrencies, except cryptocurrency issued by the State, be banned in India.
- The Committee also recommends that all exchanges, people, traders and other financial system participants should be prohibited from dealing with cryptocurrencies.
- The Committee has recommended a law banning the cryptocurrencies in India and criminalizing carrying on of any activities with cryptocurrencies in India.
- “Whoever directly or indirectly mines, generates, holds, sells, deals in, transfers disposes of or issues Cryptocurrency or any combination thereof with an intent to use it <…> shall be punishable with fine of with imprisonment which shall not be less one year but which may extend up to ten years, or both<…>”
- Whoever directly or indirectly promotes, issues any advertisement, solicits, abets or induces any participation in any activity involving the use of Cryptocurrency <…> shall be punishable with fine or imprisonment which may extend up to seven years or both.