Indian Panel Wants Fines And Jail Time For Cryptocurrency Use
Indian Government Is Trying To Take Out Bitcoin
Earlier in the week, the panel asked to check the effect of cryptocurrency on Indians gave their report to India’s Finance Ministry. The panel proposed fines and jail time to Indian citizens found trading or possessing cryptocurrencies.
The panel worries that cryptocurrencies could be used for the drug trade, and other illicit activities due to the lack of regulations surrounding it, and more importantly, the fact that cryptocurrencies were created by non-sovereigns.
The panel had this to say;
“Therefore, the Committee is of the clear view that the private cryptocurrencies should not be allowed. These cryptocurrencies cannot serve the purpose of currency. The private cryptocurrencies are inconsistent with the essential functions of money/currency. Hence, private cryptocurrencies cannot replace fiat currencies. The Committee recommends that all private cryptocurrencies, except any cryptocurrency issued by the state, be banned in India. The Committee endorses the stand taken by the RBI to eliminate the interface of institutions regulated by the RBI from cryptocurrencies.”
The panel then suggested that a cryptocurrency created by RBI and regulated by the government would be of great benefit to the country.
Irrespective of the final pronouncements by the Indian lawmakers, a 10-year jail term for possessing Bitcoin sounds unreasonable and extreme. Should the Indian government go ahead with their plan, it won’t deter the rise of crypto, and it will only go on to promote it.