Now holding, selling or dealing in cryptocurrencies could soon land you in jail for 10 years. The "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019" draft has proposed 10-year prison sentence for persons who "mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.
Besides making it completely illegal, the bill makes holding of cryptos a non-bailable offence. A cryptocurrency is a digital or virtual currency that uses cryptography for security and is generally based on blockchain technology, a distributed ledger enforced by a disparate network of computers. Bitcoin is the most popular cryptocurrency in the world.
Given the high chances 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 (CBIC) had endorsed banning of cryptocurrencies.
Economic Affairs Secretary Subhash Chandra Garg has been leading the exercise for banning cryptocurrency in India. While strict law would soon be in place to deal with people indulging in trade of cryptocurrency, India is likely to have its own digital currency.