Cryptocurrency Trading in India a Non-bailable Offense Soon?

According to the new bill, lawmakers have proposed the draft of Banning of Cryptocurrency and Regulation of Official Digital Currency Bill on  cryptocurrency trading in India. Committing crimes such as mine, hold, sell, transfer, generate, dispose of, issue or deal in cryptocurrencies would reportedly sentence 10 years of non-bailable Jail to the holder.

Having said that, there were high chances of cryptocurrencies being misused for money laundering, several government bodies such as Central Board of Indirect Taxes and Customs (CBIC) and Income Tax Department had endorsed banning of cryptocurrencies.

The crime also holds several intricate areas as the Bill also files that the punishment will be made to fit the crime – with a person’s crypto profits used against them.

End of Cryptocurrency Trading in India?

As per the bill, courts will consider four major criteria such as Actual and intended gain made, and loss caused the culpability of the accused, repetitive nature of the offense, and harm caused to the system.

The leading panel was addressed by Economic Affairs Secretary Subhash Chandra Garg who drafted the bill. The panel also had several other important members of the Securities and Exchange Board of India (SEBI). It also includes representatives from investigation agencies and the Central Board of Direct Taxes (CBDT) among others. 

“The penalty imposed on the accused, according to the bill, shall be either thrice the loss caused to the system, or three-fold the gains made by him/her, whichever is higher. If the loss or gain can’t be reasonably determined, the maximum fine that can be imposed may be notified by the government,” reported BlommbergQuint

Regularizing cryptocurrency in India dashed the hope, as the bill also proposes if any holder possessed a cryptocurrency would have to declare it, and then dispose it off within 90 days.

“If any conduct is punishable under any other law, this Act will be in addition to, and not in derogation of such law,” extract from the draft proposing the penalty for cryptocurrency traders.

Meanwhile, the government of India is on the verge to launch its own Digital Rupee and it would be governed by regulations under RBI Act, 1934. This activity will be proposed after consulting the central board of the Reserve Bank of India (RBI).