Indian government draft proposes 10-year prison for crypto dealings
A leaked draft of India's cryptocurrency bill proposes a 10-year prison sentence for anyone dealing with crypto, signaling severe regulatory risk.
On June 7, 2019, a draft of the Indian government’s cryptocurrency bill was leaked, proposing that individuals who transact, mine, or provide services involving cryptocurrencies, including Bitcoin, could face up to 10 years in prison and substantial fines. The proposed legislation aimed to establish a comprehensive legal framework, citing risks of money laundering, terrorism financing, and investor protection.
Crypto industry participants expressed concern over the punitive approach, emphasizing that such regulations could stifle innovation and push legitimate businesses underground. Media outlets such as The Economic Times and Cointelegraph reported extensively on the leak, highlighting both domestic and international reactions.
Analysts compared the potential effects of the bill to previous regulatory actions in countries like China and South Korea, predicting a chilling effect on adoption. Advocacy groups, including the Blockchain and Cryptocurrency Council of India, began engaging policymakers to suggest amendments that would allow controlled adoption while minimizing risk.The leak triggered widespread discussions within the Indian Bitcoin community, stressing the need for clarity and balance between regulation and innovation.