It was recently reported that the authorities in India have proposed a bill to ban the use of digital assets in the country. It has now been reported that the authorities have specified penalties people will face if they violate the proposed crypto legislation.
The crypto bill has only been proposed at the moment and is listed on the parliamentary agenda for the winter session. It is still to be discussed after which it will be revealed to the public as well.
According to reports, the crypto ban bill will prohibit any kind of crypto-related function or activity, even though a large number of Indian citizens are interested in crypto.
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Consequences of Violating the Crypto Ban Bill in India
The authorities in India have been against cryptocurrencies for quite some time as this is not the first time a crypto ban bill has been proposed. In 2019, the “Banning of Cryptocurrency & Regulation of Official Digital Currency Bill” was drafted, which is now the foundation of the current bill.
According to reports, this crypto bill will prohibit any kind of crypto-related activity including generating, mining, hodling, dealing or selling digital assets as a “medium of exchange, store of value and a unit of account”.
According to the finance minister in the country, the bill needs to be approved by the union cabinet before it is introduced to the public.
The penalties for violating the bill are clear and any kind of violation will be seen as a “cognizable” offense.
This means that anyone who violates the rules identified by the bill will be arrested without a warrant and held without bail.
Here are the specificities of the penalties.
- Any company or individual who violates the rules will have to pay a fine of around $2.65 million or INR 200 million.
- Anyone who violates the rules can receive jail time of up to 1.5 years.
Can This Affect the Crypto Market?
Different countries have different approaches to cryptocurrencies, India being on the opposite side as seen above. However, the significance of crypto space is not necessarily affected by such news, even though the prices of digital assets fluctuate from time to time.
The number of citizens in India who are in favor of crypto is quite huge, which has perhaps led the Securities and Exchange Board of India to regulate crypto exchanges. This will allow the users to keep their crypto in the custodian wallets of the exchanges and will prohibit storing crypto outside the exchanges.
The crypto ban bill is yet to be approved and implemented and whether or not it will impact the crypto space will be seen with time.
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