Crypto investors get a shock as India drafts bill to ban digital currency

Crypto investors get a shock as India drafts bill to ban digital currency

Uncertainty shrouds over cryptocurrency investments and trading in India after the Ministry of Corporate Affairs (MCA) circulated a draft bill that would ban cryptocurrencies.

The draft bill also listed measures for regulating India's proposed official digital currency.

The bill was slated to be introduced in the recently wrapped up budget session of 2021 but it has been delayed. If passed, it could deal a major blow to nvestors piling into the red-hot asset class.

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The draft bill seeks to prohibit mining, holding, selling, trade, issuance, disposal or use of cryptocurrency in the country.

In case of non-adherence, the proposed legislation has prescribed penalties and/or imprisonment of up to 10 years.

India's move on cryptocurrencies has alarmed sector experts who called for a balanced approach on the issue.

“It is a question of horses for courses,” said an expert on digital currencies with PwC India.

The draft bill, however, has proposed permitting the use of processes or technology underlying any cryptocurrency for experiment, research or teaching.

“The government [of India] in consultation with the Reserve Bank of India (RBI),