December 9 2021:The Indian Government will introduce the much-awaited ‘The Cryptocurrency and Regulation of Official Digital Currency Bill 2021’ in Parliament during the winter session of parliament.
The bill proposes a "general prohibition on all activities by individuals in mining, generating, holding, selling, dealing in issue, transfer, disposal of or use of cryptocurrency as a medium of exchange, store of value and a unit of account."
Any person using technology related to crypto assets for any lawful activity will be exempted from the proposed restrictions as "the underlying technology of crypto assets is still evolving and has many uses".
The proposed bill highlights that the underlying technology or process involving cryptocurrencies for purpose of experiments and research cannot be used for making or receiving any payments.
The bill also seeks to "minimise financial stability risks by suitably ring fencing the formal financial sector from crypto assets".
Individuals and corporations violating government rules on crypto finance will face fines of up to ₹ 20 crore and a jail term of 1.5 years, according to the proposed legislation to regulate cryptocurrency in India. All private cryptocurrency will be regulated and not banned, as was planned earlier. However, crypto will not be recognised as currency or legal tender. The legislation's name has replaced the word "cryptocurrency" with "cryptoasset".
Sources: NDTV IndiaToday