India may ban all cryptocurrencies except the "digital rupee"

India may ban all cryptocurrencies except the "digital rupee"

Translator: Play the coin family ElaineHu

This week, a new leaked document disclosed that India is preparing to take measures to ban the trading of cryptocurrencies such as Bitcoin in any form.

New news says the new draft law will "ban" bitcoin and cryptocurrency

The document was uploaded to the sharing site Scribd by the regional blockchain and technical attorney Varun Sethi, allegedly a preliminary document for a new bill aimed at “prohibiting the use of cryptocurrencies”.

The incident has intensified speculation that the Indian government and central bank want to ban the use of cryptocurrencies outside their control.

If the document is true, it will confirm that any activity involving Bitcoin and Ark is illegal in India.

One of the regulations states that “no one may mine, produce, hold, sell, trade, issue, transfer, dispose or use cryptocurrencies in India”.

Sethi described the document as "a bill that proposes to ban cryptocurrencies and regulate the official digital currency of 2019."

He pointed out that

"The bill has not yet been fully drafted and submitted to the parliament, and the final bill may change the content."

"The recommendations mentioned therein penalties for those who violate government orders include imprisonment for up to 10 years."

Prohibition of unauthorized cryptocurrency, except for digital rupees

As reported by Bitcoinist, India's current measures for cryptocurrency regulation are not perfect. Since July last year, banks have been banned from providing services for industries such as exchanges, resulting in a large outflow of funds, while other banks have simply closed down.

In the absence of strict legal supervision, some people still have hope for long-term positive results, as opponents of the bank ban have brought the Reserve Bank of India (RBI) to court.

However, now, India seems ready to go further than China in the anti-encryption position, and it is still unclear how the relevant departments will impose bans on entities they cannot control.

As the US government itself tackled the reality of decentralized networks, this problem appeared in a heart-rending moment.

At a press conference on Monday, US Treasury Secretary Steven Mnuchin stressed the desire to combat the role of cryptocurrencies in illegal activities, while supporting President Donald Trump's statement. Trump last week described the cryptocurrency as "made out of thin air."

However, unlike the United States but similar to China, India plans to issue a digital rupee, which is described in the latest document as an “official digital currency”.

The document states that “the definition of cryptocurrency does not include the digital rupee, nor should it refer to any foreign digital currency that is considered a foreign currency in India”.

There is no specific date for when the draft will be officially introduced. As previously reported by Bitcoinist, rumors about the crackdown triggered a reactionary reaction from cryptocurrency proponents, including the CEO of the big exchange currency.

"The more 'forbidden', the more people want to get it," Zhao Changpeng said in late June.

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