The Indian government is considering to put a ban on the use of cryptocurrencies in the country, according to a leaked draft of a bill.
Titled “Banning of Cryptocurrency & Regulation of Official Digital Currencies,” the draft is being circulated by technology lawyer Varun Sethi, however, its authentication cannot be verified yet.
Here’s the complete crypto draft bill thanks to
It does talk about a ban. However:
1. Authenticity is not verified
2. Monsoon session of Parliament will not discuss this
3. It takes a long time for a bill to pass
— Nischal (WazirX) ⚡️ (@NischalShetty)
The draft defined digital currencies as “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.”
“No person shall mine, generate, hold, sell, deal in, issue, transfer, dispose of or use Cryptocurrency in the territory of India,” a section of the draft stated.
Despite the hostility towards cryptocurrencies, the draft proposed a “Digital Rupee” which will be issued by the Reserve Bank of India. This, however, contradicts earlier media reports which revealed that the .
“Digital Rupee means a form of currency issued digitally by the Reserve Bank of India and approved by the Central Government to be legal tender,” the draft noted.
It is likely that the bill will be tabled before the lawmakers in the ongoing parliamentary session.
The draft, however, kept the use of blockchain technology outside its restriction and also allowed the use of crypto for the purpose of research.
“Nothing in this Act shall apply to the use of Distributed Ledger Technology for creating a network for delivery of any financial or other services or for creating value, without involving any use of cryptocurrency for making or receiving payment,” the draft added.
Bill to kill crypto
If the bill passed, it might kill the already struggling crypto industry in the country. Just in the past few months, three crypto exchanges operating in the country , citing uncertainty in regulations.
Meanwhile, due to the hostility of the Indian government towards crypto, Facebook decided in the country. This is odd as India is the largest market of the social media giant for its various platforms.