According to a draft bill suggested by an inter-ministerial committee (IMC) in July 2019, formed under the Finance ministry, a suggestion was put forward to severely penalize any user of cryptocurrency, a part of the long and tedious process of cracking down on crypto. This comes as a setback for all crypto and blockchain aspirants in the country as the government seems unable to listen to the wishes of its citizens.

Proving its negative stance on cryptocurrencies, the report even specifically defines what it sees as a cryptocurrency. Cryptocurrency has been defined as "any information or code or number or token not being part of any official digital currency, generated through cryptographic means or otherwise, providing a digital representation of value which is exchange with or without consideration, with the promise or representation of having inherent value in any business activity which may involve risk of loss or an expectation of profits or income, or functions as a store of value or a unit of account and includes its use in any financial transaction or investment, but not limited to, investment schemes.”

Any holders, users, miners, or dealers of any form of cryptocurrency has been threatened with a penalty and jail term from 1 to 10 years in the report. If the draft bill becomes the law, cryptocurrency holders will have 90 days to declare and dispose of cryptocurrencies “in accordance with the prescription of the central government.”



