Draft Bill ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’.
Provisions of the Draft Bill
- Cryptocurrency cannot be used as legal tender or currency at any place in India.
- The bill prohibits everyone to mine, generate, hold, sell, deal in, issue, transfer, dispose of or use Cryptocurrency in the territory of India.
- The Central Government is allowed to declare Digital Rupee to be legal tender with the consent of the Reserve Bank of India.
- The Reserve Bank is empowered to declare any official foreign digital currency to be recognised as foreign currency in India.
- The use of Distributed Ledger Technology for creating a network for delivery of any financial or other services or for creating value, without involving any use of cryptocurrency is not prohibited.
- Direct or indirect use of Cryptocurrency shall be punishable with fine or imprisonment of 1 year which may be extended to 10 years or both.
