All the crypto dreams in India came down crashing, and a new bill has been introduced in India, proposing a complete ban on crypto trading and criminalizing it. The Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019, proposes a 10-year prison term for anyone engaged in mining, generating, holding, transferring, disposing, issuing or dealing in cryptocurrencies in India.
The journey of cryptocurrencies in India was always on a bumpy road and had witnessed severe blows; however, none as bad as this one. There were times, especially after the Supreme Court’s intervention, were one could hope that crypto could be legalized and formalized in India, but all hopes have fallen flat after the bill was introduced. Prepared in conjunction with investigative agencies, the Central Board of Direct Taxes (CBDT) and the Securities Exchange Board of India (SEBI), the panel is headed by Subhash Chandra Garg the EA Minister himself.
As the news spread, the world lashed out heavy criticisms on the bill. Here are few tweets from influential crypto personalities criticizing the government for taking such a harsh step.
CNBC host and famous crypto trader, Ran NeuNer stated this was a stupid move.
— Ran NeuNer (@cryptomanran) June 7, 2019
Analyst and crypto expert, and founder of Morgan Creek Digital, Anthony Pompliano feels that the bill is less likely to get passed in the parliament. However, he thinks that if it gets passed, people will tend to buy more cryptocurrencies in retaliation, as they don’t like to be told what to do with their wealth.
India is proposing a 10-year jail sentence for those who mine, hold, or transact with cryptocurrencies.
I highly doubt this will get passed, but if it does, it will have the opposite effect and actually drive adoption.
People don't like being told what to do with their wealth.
— Pomp ? (@APompliano) June 7, 2019
The similar views were shared by Changpeng Zhao, CEO of Binance, who tweeted that the bill will push the world’s 1/5th population towards crypto adoption.
That Bill in India will really push privacy coin adoption forward.
— CZ Binance (@cz_binance) June 7, 2019
Such drastic steps, though still not yet in force, will make enthusiasts in the country retaliate by engaging more into crypto trade, and the situation could get more complicated. Since early last year, a tussle is on between authorities and the crypto industry. In April 2018, the Reserve Bank of India directed all banks in the via a circular, that they must stop providing services to crypto companies.
However, the situation seemed to be improving when the government constituted a new committee on formalizing crypto trade, which showed positive signs for the industry. Recently, the RBI denied having any knowledge of the cryptocurrency draft bill.
The current bill has come as a big shocker to the entire crypto community, and the enthusiasts in the country will definitely seek legal remedies to counter it.