Besides making it completely illegal, the bill makes holding of cryptos a non-bailable offence.
A cryptocurrency is a digital or virtual currency that uses cryptography for security and is generally based on blockchain technology, a distributed ledger enforced by a disparate network of computers. Bitcoin is the most popular cryptocurrency in the world.
Given the high chances of cryptocurrencies being misused for money laundering, various government bodies such as the Income Tax Department and the Central Board of Indirect Taxes and Customs (CBIC) had endorsed banning of cryptocurrencies.
The draft bill for banning cryptocurrency has been in the works for some time with Economic Affairs Secretary Subhash Chandra Garg leading the exercise.
While strict law would soon be in place to deal with people indulging in trade of cryptocurrency, India is likely to have its own digital currency.
"A decision on the launch of digital rupee would be taken after consulting the Reserve Bank of India (RBI)," said an official.
Cryptocurrencies like bitcoin have been on a free fall for many months, but India’s outlook for it has been discouraging from day one. Even in the last year’s finance budget, special mention was made for these digital instruments, and now, a decade long jail term being proposed as a law takes this to a whole new level.
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