Imprisonment for up to 10 years .. Problem with having private cryptocurrency – What does the crypto bill say?
New Delhi: The purchase, sale, investment and possession of private cryptocurrency is prohibited by the Central Government’s Cryptocurrency Bill. Beyond that, using cryptocurrency is a crime equivalent to laundering black money.
The federal cryptocurrency bill states that it could carry up to 10 years in prison or a fine, or both.
The use of cryptocurrency around the world is increasing day by day. Until a few years ago there were only a few cryptocurrencies and now there are more than 3500 cryptocurrencies worldwide. In which cryptocurrencies like Bitcoin are worth more than the dollar.
The world of cryptocurrencies is unique in that it trades in coins and tokens. Cryptocurrency investment in India is just beginning to heat up. But a mob has formed to keep this up and do the trick.
The use of cryptocurrency around the world is increasing day by day. Until a few years ago there were only a few cryptocurrencies and now there are more than 3500 cryptocurrencies worldwide. In which cryptocurrencies like Bitcoin are worth more than the dollar.
The world of cryptocurrencies is unique in that it trades in coins and tokens. Cryptocurrency investment in India is just beginning to heat up. But a mob has formed to keep this up and do the trick.
China
China and Saudi Arabia have a cryptocurrency ban. Countries such as Japan, Canada, and Switzerland have regulatory rules regarding cryptocurrencies. There are hourly laundry regulations against cryptocurrency in these countries to prevent black money from being laundered. This is what the RBI and its governor Shaktikant Das have been emphasizing for the past few months.
RBI
Following this, the central government recently decided to bring in regulatory rules related to cryptocurrency. The parliamentary committee session on cryptocurrency discussed this. It was discussed whether to bring the bill and finally a draft bill was drawn up for this. The session was chaired by BJP MP Jayant Sinha. As discussed on the 16th, cryptocurrencies cannot be eliminated altogether. So it was decided that this would bring order.
Draft bill
It was followed by the introduction of the Draft Cryptocurrency and Regulation of Official Digital Currency Bill, 2024, in India yesterday. The draft bill, which will be debated before the Cabinet today, will be approved for tabling in Parliament. The bill will then be tabled in Parliament.
What the bill says
The point of this draft bill is simple .. People in India cannot use private cryptocurrencies as a currency. This cannot be used for cash even though it is digital. This is banned by the federal government. It is forbidden to buy, sell, invest in or buy private cryptocurrency. Accordingly, various private cryptocurrencies will be banned and some currencies will be restricted. The bill is also set to lay the groundwork for the official introduction of the digital currency regulated by the RBI.
Control
That means RBI will issue a digital currency. At the same time the use of cryptocurrency technology, in which tasks including research are exempted. In addition, cryptocurrency licensed abroad will be allowed in India in the form of foreign currency. For example if Bitcoin is licensed in the US, Bitcoin in India will be considered a currency of the US country (but not in dollars). The bill will allow only the amount of foreign currency allowed in India to be allowed abroad. Thus some cryptocurrencies will not be completely banned.
Ban on cryptocurrencies?
Since this is a draft bill, some changes are likely to be made before it is tabled. The Cryptocurrency Bill prohibits the purchase, sale, or investment of private cryptocurrencies. Violating this is an equivalent crime of laundering black money. I.e. crime equivalent to hour laundry. The draft bill states that this carries a maximum sentence of 10 years in prison or a fine or both.
10 years
Within 90 days of the bill becoming law, one must publish details of the cryptocurrency they have. The bill states that otherwise it would be considered a crime. Many black money laundering offenses are punishable by 7 to 10 years in prison. It states that a similar penalty will be imposed for cryptocurrency crimes.
