Crypto

Indian bill banning cryptocurrency payments could lead to jail time for violations: report

Prime Minister Narendra Modi’s government has previously signaled that it plans to ban most cryptocurrencies, a move that follows China’s measures in September that intensified its crackdown on cryptocurrencies.

The bill that would ban the use of cryptocurrencies as a form of payment in India also targets offenses punishable by arrest without warrant and detention without bail, according to a source and a summary of the bill seen by Reuters.

Prime Minister Narendra Modi’s government has previously signaled that it plans to ban most cryptocurrencies, a move that follows China’s measures in September that intensified its crackdown on cryptocurrencies.

According to the summary of the bill, the Indian government provides for a “blanket ban on all activities of any individual on the exploitation, generation, possession, sale, (or) trade” in digital currencies such as ” medium of exchange, store of value and unit of account. “Breaking any of these rules would also be” recognizable “, meaning that arrest without a warrant is possible and” without precaution, “he said.

The source, who has direct knowledge of the case, was not allowed to speak to the media and declined to be identified. The ministry did not respond to an email with comment. previously stated that it was aimed at promoting blockchain technology, the bill will also deal a severe blow to its use and India’s non-fungible token market, the lawyers said. are not carried out. an exception for transaction fees, this will also stop the development of blockchain and NFT, ”said Anirudh Rastogi, founder of the Ikigai Law firm. a frenzy in the market and several investors came out with large losses.

Attracted by a wave of advertisements and rising cryptocurrency prices, the number of cryptocurrency investors has increased in India. Although no official data is available, industry estimates suggest that there are 15-20 million cryptocurrency investors in the country, with a total of cryptocurrencies worth approximately 450 billion Indian rupees ($ 6 billion).

The government is now planning to sharply cut ads in an attempt to win over new investors, according to the draft summary of the bill and the source. Self-custodial wallets that allow people to store digital currencies outside of exchanges are also likely to be banned, the source added. he said. The Securities and Exchange Board of India (SEBI) will be the regulator of crypto assets, the draft summary also says.

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