The Indian government is trying to legislate a bill that penalizes crypto coin users with a jail sentence of 10 years in another attempt to suppress the crypto community. The new Indian crypto regulations are harsher than in China.
The Banning Crypto-assets and Regulation of Official Cryptocurrency Bill 2019 hasn’t been adopted yet, however, the idea that the Indian authorities are considering such harsh laws shows that the number of crypto opponents in the country’s government is increasing.
According to The Economic Times, an Indian news outlet, in April of this year the law was already supported by prominent faces among the authorities. They are reportedly are looking forward to the end of the due process before showing their favorable views towards the legislation.
“Several government entities such as the DEA, CBDT, CBIC and others, are accepting the idea of banning crypto transactions in the country as stated by a number of officials that wish to stay anonymous.”
In China, ICOs and China-based cryptocurrency exchanges were banned in 2017 and the country has also tried to stop citizens from accessing other crypto exchanges.
There is fear that India is moving toward this direction also, as they not only try to restrict crypto transfers but also eliminate them completely.
On the other hand, despite the harsh crypto regulations, both in India and China the Blockchain industry is flourishing and there seems to be no move towards harsh restrictions or regulations in this particular sphere.
The rumor of regulations started in April when the country’s Reserve Bank allowed blockchain to be used only on a limited number of crypto-assets, exchanges and consumers. This showed that the end of crypto coins in India was coming soon.
There have been numerous requests to reconsider the restrictions of crypto coins and exchange, however, there was no answer from the Reserve Bank.
Two crypto exhcanges in India came to the decision to close down in the past couple of months. However, if this string of regulations continues, these won’t be the only ones forced to stop their work.