Blockchain Lawyer Varun Sethi has released an unverified draft copy of the Alleged Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019 today. While the source of the document could not be confirmed, the draft copy of the bill does confirm some of the cryptocurrency community’s worst fears.
The 18-page document has gone into meticulous detail explaining various facets of the bill such as definitions, prohibitions, regulations, penalties and other related information.
“Cryptocurrency”, by whatever name called, means 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 which is exchanged with or without consideration, with the promise or representation of having inherent value in any business acivity which may involve risk of loss or an expectation of profits or income, or functions as a store of value or unit of account and includes its use in any financial transaction or investment, but not limited to investment schemes.Definition of Cryptocurrency
The proposed bill has also stated that no person will be allowed to mine, generate, hold, sell, deal in, issue, transfer, dispose of or use Cryptocurrency in the territory of India. In addition, it does allow the use of distributed ledger technology, provided that no cryptocurrencies are involved.
In addition, the alleged copy has also confirmed that the violation of the law may result in imprisonment of up to 10 years. The bill also speaks about a ‘Digital Rupee’ which may be issued by the Reserve Bank of India (RBI). However, it is highly unlikely that this bill may be tabled in the Parliament any time soon.
It is worth noting that India has expressed commitment to the FATF standards in the recent G20 meetings and the contents of the draft copy run against the commitment. In addition, the Indian cryptocurrency community is awaiting the Supreme Court hearing in the RBI cryptocurrency case on July 23rd.
What will be the impact of G20 meetings and the Supreme Court ruling on cryptocurrency regulations? We will have to. wait and watch!