India is preparing to impose a comprehensive ban on cryptocurrency ownership. According to the news of Reuters; A draft law is being prepared that prohibits cryptocurrency trading, mining, publishing, transfer and ownership. If the law is passed, India will have the world’s strictest digital currency law.
According to the draft law, those who already have cryptocurrencies must convert them into liquid within six months. It remains unclear for now what penalties will be imposed for non-compliance with the law. However, in a state-sponsored panel held in 2019, it was stated that up to 10 years of imprisonment could be imposed for cryptocurrency-related crimes. While the officials stated that the preparations were coming to an end, it was stated that a timetable for the submission of the draft was not yet established.
India first shared its plans for the cryptocurrency law with the public last January. In the statement made at that time, it was stated that all cryptocurrencies could be banned, but some exceptions could be applied to encourage blockchain technology. India is making all these preparations to issue its own crypto money.
It should be noted that no country has such a harsh cryptocurrency legislation. Although trading cryptocurrencies is prohibited even in China, it is not a crime to own these coins.
India has shown its tough stance on cryptocurrency trading before. The country’s central bank banned banks from trading cryptocurrencies in 2018. This decision was declared invalid by the high court in 2020.