June 10, 2019, | AtoZ Markets - Holding, selling or dealing in cryptocurrencies such as Bitcoin could soon land crypto traders in jail for 10 years. Now, Besides proposing a ban on cryptocurrencies, the draft bill considers possessing cryptocurrencies as a non-bailable offense.
Crypto owners jail sentence in India
According to the draft, individuals who reside in the country is not allowed to mine, generate, hold, sell, transfer, dispose of, issue or deal in cryptocurrencies directly or indirectly could face jail for up to 10 years time.
Besides making it completely illegal, the bill makes the holding of cryptocurrencies a non-bailable offense. The chances are high 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 of India had endorsed banning of cryptocurrencies.
RBI officials said: "A decision on the launch of Digital Rupee would be taken after consulting the Reserve Bank of India (RBI)."
The draft bill for banning cryptocurrency has been in the process since a long time with Economic Affairs Secretary Subhash Chandra Garg leading the duty. Now, the strict law would be implemented to deal with people indulging in the 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.
Uncertainties about Cryptocurrencies ban is true or false
Despite this, it is still uncertain if the news about the crypto ban in India is true or fake since the Reserve Bank of India (RBI) recently denied having any knowledge about the government’s plans to ban cryptocurrency. The RBI’s stance was made known after Varun Sethi, a lawyer who specializes in the blockchain filed a Right to Information request to the RBI on May 7, 2019.
While responding to Sethi’s questions on June 4, 2019, the RBI said it did not receive any copy on the suggested draft bill and it has not communicated with the central government regarding any ban. Also, it has neither endorsed the decision to ban cryptocurrencies nor has it received any written communication that a government department is about to endorse it.
Monero and Zcash might flourish in India
After putting a ban in cryptocurrencies, India's anti-crypto bill might flourish Monero and Zcash in the country. This is because these coins will be hidden from the eyes of the government and thus giving individuals immunity from prosecution.
According to a recent tweet by CZ_Binance, the latest bill in India will really push privacy coin adaption forward.
Transactions which involves Bitcoin and other non-privacy focused cryptocurrencies are not anonymous. This anonymity has especially been destroyed with the growth of blockchain tracking and analysis firms. These firms are used by others by law enforcement agencies in inferring the identity of individuals who deal with cyptos.
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