Government has introduced a draft bill on Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019.
The draft bill says that anybody who mine, hold, transact or deal with cryptocurrencies in any form whether directly or indirectly through an exchange or trading can attract a jail term of one to 10 years.
The draft also proposes a monetary penalty of up to three times the loss caused to the exchequer or gains made by the cryptocurrency user whichever is higher.
The bill also proposed that any person holding cryptocurrencies will be required to declare and dispose of it within 90 days from the date of commencement of the act.Further,a regulator may also be appointed under the act to monitor activity.
The draft bill has also proposed the introduction of an official digital rupee in consultation with the Reserve Bank of India (RBI).
Crypto currency is a digital currency.It allows transacting parties to remain anonymous while confirming that the transaction is valid one.It is not owned or controlled by any institution including both government institutions and private institutions.Various cryptocurrencies used globally are Bitcoin,Ethereum and Ripple.
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