On Monday, a tech lawyer named Varun Sethi has uploaded a copy of a draft bill (pdf) that seeks to ban cryptocurrencies in India and to be deliberated on by the Parliament of India. The draft bill aims to completely ban cryptocurrencies in the country.
Titled as “Banning of Cryptocurrency & Regulation of Official Digital Currencies”, the document is 18 pages long and contains a few specifics regarding definitions and plans to outlaw the use of crypto in the country.
The document, authenticity of which is yet to be confirmed, states the possible effects this bill may have on cryptocurrency in the country and the global sector in general.
The leaked document specifically states that no person would be allowed to use cryptocurrency in India as a medium of exchange, store of value, and/or unit of account, adding that cryptocurrencies shall not be used as legal tender at any place in the country.
Those who are found to be directly or indirectly mining, generating, holding, selling, dealing in, transferring, disposing or issuing cryptocurrency would be “punishable with fine…or with imprisonment which shall not be less than one year but which may extend up to ten years, or both.”
The leaked document surfaced online within a few weeks after it was reported that India is considering to put a law wherein there will be a jail term of one to 10 years for those who mine, hold or sell cryptocurrencies.
The leaked document does not mention “the 10-year jail term” but it does describe the procudeure to “determine the period of Imprisonment” as in below Image
Besides banning cryptocurrency, the bill also lays out the provision for “Digital Rupee” as well as official foreign digital currency.
The bill describes “Digital Rupee” as “a form of currency issued digitally by the Reserve Bank and approved by the Central Government to be legal tender.”
“Foreign digital currency” is defined as “any class, category or type of digital currency recognised as legal tender in a foreign jurisdiction.”
“The Central Government, in consultation with the Central Board of the Reserve Bank, may approve Digital Rupee to be legal tender with effect from such date and to such extent as may be specified,” the bull states.
“The Reserve Bank may by notification declare any official foreign digital currency to be recognised as foreign currency in India to the extent specified in the notification.”
This is the Allege Draft of the proposed Banning of Cryptocurrency and Regulation of Official digital currency bill 2019 ( India) is yet to be drafted completely and tabled in the parliament to become an Act with or without modifications.