The Indian Authorities have always been unclear about their stand on cryptocurrencies. However, they are actively adopting an opposing stand since the last couple of years.
It began with the banning of banking services to businesses and entities engaging in Virtual Currency transactions in June 2018. Nevertheless, P2P exchange platforms still flourish as crypto enthusiast continue to trade ethically in cryptocurrencies.
However, Koinex, one of the largest peer-to-peer platform in India announced its closure due to extreme scrutiny and hindrances caused by the policing authorities.
Draft Bill Shared By Blockchain Lawyer
Moreover, a report which came out in June 2019 regarding the draft cryptocurrency bill which seeks a ban on cryptocurrency transactions, ethical or unethical. While the authorities have made no confirmations or official statement, Varun Sethi, Indian Tech Lawyer and a crypto-enthusiast, has shared the alleged draft bill. He tweeted,
The complete draft of the ALLEGED #Banning of #CryptoCurrency and Regulation of Official #Digital Currency #Bill 2019 #India
The Alleged Draft Bill Shared Online (Source)
Coincidently, the contents of the draft bill leaked are in agreement with the previous reports which provides more authenticity to the document. Hence, the doubts around it seem to be diminishing by each revelation.
According to the leaked document, India does seek ban storage and usage of cryptocurrencies.
No person shall mine, generate, hold, sell, deal in, issue, transfer, dispose of or use cryptocurrency in the territory of India.
The drafting committee has also proposed fine and punishment for people engaging in crypto activities. The penalty will be decided by the Governments and can be up to three times the value of profit or loss generated.