India’s proposed anti-cryptocurrency legislation, “Banning Cryptocurrencies and Regulation of Official Digital Currency Bill 2019,” contains language that proposes a 10-year prison term for citizens who "mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies," according to a Friday report from Business Today:
Along with making it illegal, the draft law also proposes to make holding cryptocurrencies a non-bailable offence. This marks the end of hopes that the Modi government 2.0 would change its longstanding unfavourable stance on cryptocurrencies.
The panel tasked with drafting the new law is being led by Economic Affairs Secretary Subhash Chandra Garg, and includes representatives from India’s investigating agencies, the Securities and Exchange Board of India, the Central Board of Direct Taxes, and other officials.
Meanwhile, the Reserve Bank of India reportedly claims that it was not involved in the bill’s creation and has yet to receive a copy of the draft.
The revelation is likely to further diminish hopes that India’s government could be persuaded to change its anti-cryptocurrency stance. The Reserve Bank ordered the nation’s banks to end banking services for cryptocurrency exchanges more than a year ago, and government officials have frequently called for an outright ban on cryptocurrencies.