India’s Anti-Crypto Draft Bill Proposes 10-Year Jail Term For Crypto Dealings

News, Regulation | June 10, 2019 By:

Indian lawmakers have reportedly proposed a 10-year prison sentence for persons who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.

The proposed crypto regulation is reportedly part of the “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” draft, which was submitted by the inter-ministerial committee led by the Indian Department of Economic Affairs secretary Subhash Chandra Garg. In addition to making it completely illegal, the bill makes holding of cryptocurrencies a non-bailable offense.

According to local financial news agency BloombergQuint, if passed, the bill will order crypto holders to declare their crypto assets within 90 days and to dispose the assets “in accordance with the prescription of central government.”

“The penalty imposed on the accused, according to the bill, shall be either thrice the loss caused to the system, or three-fold the gains made by him/her, whichever is higher,” the report said. “If the loss or gain can’t be reasonably determined, the maximum fine that can be imposed may be notified by the government.”

The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019 also proposed the creation of a new official cryptocurrency — called the Digital Rupee, while the Reserve Bank of India (RBI), the country’s central bank, reportedly postponed its plans to release a central bank digital currency (CBDC) in early 2019.