- According to reports, India is close to its way of officially banning the use of private cryptocurrencies.
- A government spokesperson addressed today that the finance ministry has sent a note for inter-ministerial consultations.
- The government thinks that a legal structure will be more effective than a circular from the RBI.
According to reports, India is close to its way of officially banning the use of private cryptocurrencies. As it plans to introduce a law that surpasses the Supreme Court dismissal over the RBI-induced crypto ban.
A robust legal structure over the RBI 2018 circular
However, after a historical verdict by Supreme Court on RBI 2018 circular, the crypto industry was celebrating the hope of entering the Indian market that is full of opportunities.
Besides this, India is working to introduce a new law that will have a long-lasting ban on cryptocurrency. A government spokesperson addressed today that the finance ministry has sent a note for inter-ministerial consultations. However, the government thinks that a legal structure will be more effective than a circular from the RBI.
Further, after consultations, the note will be sent to the cabinet, and further, it will be passed to the parliament. If the law is under the same considerations as the prior proposals, then it will give a flick to exchanges, crypto investors, and the entities that are trading in cryptocurrencies.
Penalties for dealing in cryptocurrencies
A top panel of government has prepared a draft law in July 2019. Seeking a ban on all sorts of cryptocurrencies. It suggested a penalty of Rs. 25 crores and imprisonment of up to 10 years must be charged for anyone dealing in it.
As the draft law describes any direct or indirect use of cryptocurrency will be an offense. However, it will be charged with fine or imprisonment of not less than one year but may extend up to ten years.
Amit Maheshwari pointed out that such proposed law will make an illegal to hold, sell, issue, transfer, and mine cryptocurrency. While if passed that will entirely flush-off the crypto business in India.