- India could ban virtual currencies in the near future
- If that happens, the government could impose 10-year sentences to those dealing with them
According to a report released by Reuters on July 22nd, an Indian government panel is recommending a ban on virtual currencies in the country. At the same time, this panel considers that it is important to impose sanctions for those users dealing with virtual currencies.
India Gets Closer To Banning Virtual Currencies
Although a decision about virtual currencies has not yet been made in the country, a panel recommended the government to ba digital assets and impose sanctions to those that don’t follow these rules. The draft legislation was examined by regulators and it will have to be checked by the government before taking a final decision about it.
The Indian Minister of State for Finance Anurag Thakur said that there is currently no law in India that prohibits the use of virtual currencies. However, this new draft bill shows that there is a clear interest in reducing the influence that virtual currencies have in India.
According to this draft, a cryptocurrency is:
“(…) any information or code or number or token not being part of any Official Digital Currency, generated through cryptographic means or otherwise, providing a digital representation of value.”
At the moment, there are many proposed definitions for cryptocurrencies around the world. However, there are no common standards among jurisdictions to use similar definitions for crypto terminology. At the same time, the report says that the Indian central bank, the Reserve Bank of India (RBI) could eventually recognize a digital rupee as a legal tender.
The report released in India shows that there are some issues that must be clarified in the country regarding Bitcoin and its legal status. Several cryptocurrency exchanges have already shut their operations down during the last years because of the pressure the government placed on the market. Meanwhile, other crypto-related firms have also had to stop operating in the market.