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Indian Declaration on Cryptocurrencies Proposes Jail Term for Violation of Rules

Dec 16, 2021

The bill with such proposal is to be tabled for voting in the nearest time.

While Indian government is still working on development of cryptocurrency legislation, which is expected to be set on vote in the ongoing session of the Indian parliament, this legislation included a proposal of complete ban on cryptocurrency use as a payment method and violation of such law may lead to criminal charges.

According to anonymous sources, the draft bill is recommending strict jail terms for the violators, who can be arrested without any warrant. Furthermore, the offenses could be ‘non-bailable’.

Although the legislation draft is not yet publicly available, it has been listed on the roaster of the ongoing parliamentary session of the country.

The Indian government is planning to imply a ‘general prohibition on all activities by any individual on mining, generating, holding, selling, (or) dealing’ in cryptocurrencies ‘medium of exchange, store of value and a unit of account’, the summary of the bill stated.

Furthermore, the declaration might extend to the self-custodial crypto wallet platforms that hold cryptocurrencies outside crypto exchanges. However, it is still unclear how the government is planning to impose such ban on a technology which is decentralized.

Moreover, it is stated that the Securities and Exchange Board of India (SEBI), Indian securities market watchdog, will oversee all crypto-activities.

Meanwhile, cryptocurrencies are widely spread among Indian citizens. According to data provided by the industry estimates, there are approximately 20 million crypto-investors in India, whose total investment portfolio is up as much as $6 billion. Local crypto exchanges are running marketing campaigns to lure more and more potential retail crypto-investors to their platforms – the discussed bill may prohibit such activities.

We are utterly unsure about proposed measures and concerned about possibility to negatively affect the whole crypto-industry. However, not all countries share the same politics on the cryptocurrencies, and for those interested in running crypto-related business we have a wide range of proposals and decisions.

Currently, the most attractive option is Lithuanian Crypto License, which can be obtain through our professional services. Feel free to find out more in case of interest and contact our team of professionals.

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