In India, a proposed bill prohibiting cryptocurrency payments might result in jail time for violators.

According to a source and a description of the draught reviewed by Reuters, proposed legislation in India that would restrict the use of cryptocurrencies as a form of payment also intends to make people who break the law susceptible to arrest without a warrant and detention without bail.

The administration of Prime Minister Narendra Modi has already stated that it intends to prohibit most cryptocurrencies, a move that comes after China increased its assault on cryptocurrencies in September.

The Indian government intends to impose a “wide restriction on any operations by any individual on mining, creating, holding, selling, (or) dealing” in digital currencies as a “medium of exchange, store of value, and a unit of account,” according to the bill’s summary.

It added that breaking any of these criteria would make you “cognisable,” which means you may be arrested without a warrant, and “non bailable.”

The insider, who has firsthand knowledge of the situation, was not authorized to speak to the media and requested anonymity. An email requesting a response from the finance ministry was not returned.

Although the government has said that it wants to encourage blockchain technology, attorneys claim that the new regulation would harm its usage as well as the non-fungible token market in India.

“If no payments are allowed at all and no exemption is created for transaction fees, blockchain development and NFT would be completely halted,” said Anirudh Rastogi, founder of law company Ikigai Law.

The government’s promises to come down hard on cryptocurrency trading created a market frenzy, with numerous investors losing a lot of money.

The number of investors in crypto assets has risen in India, owing to a blitz of ads and growing prices for cryptocurrencies.

While there are no official statistics, industry estimates say that there are 15 million to 20 million crypto investors in India, with total crypto holdings of around Rs. 45,000 crore.

According to the draught summary of the law and the source, the government now intends to crack down on marketing that aims to entice new investors.

The insider noted that self-custodial wallets, which let consumers to keep digital currencies outside of exchanges, are also likely to be prohibited.

According to the draught summary of the law, the harsh new restrictions arise from the central bank’s deep worries about digital currencies and intend to bring in measures to ring-fence the traditional banking system from cryptocurrencies.

The Securities and Exchange Board of India (SEBI) would regulate crypto assets, according to the draught summary.

Please follow and like us:

Related Articles

Facebook
Twitter
Telegram