India’s crypto ban draft bill suggests 10-year jail term for those dealing in cryptocurrencies

The cryptocurrency space in India is headed for the worst if a proposed draft bill on Banning Cryptocurrencies and Regulation of Official Digital Currency Bill, 2019 passes into law. As per a report by Bloomberg Quint, the proposed deal is will double down on those holding, mining, buying or selling digital assets.

The introduction of such a bill in an already volatile crypto space only squashes the hopes of ever having regulations in India. The crypto industry in the country has been struggling for more than a year now since banking support was removed by the Reserve Bank of India (RBI). Several cryptocurrency exchanges have closed doors with all of them citing tight regulations and lack of banking support.

The bill has been developed in the leadership of the Economic Affairs Secretary Subhash Chandra Garg. The panel comprises of several members of Securities and Exchange Board of India (SEBI), several representatives from the countries investigative agencies and the Central Board of Direct Taxes (CBDT).

“If any conduct is punishable under any other law, this Act will be in addition to, and not in derogation of such law,” as quoted from the draft.

Although the draft support complete banning of cryptocurrencies, it proposes the introduction of an official digital currency for the Indian government. The digital asset likely to be named the ‘Digital Rupee’ will be introduced only after consulting the central board of the Reserve Bank of India (RBI).