Indian Panel Proposes Fines and Jail Time for Cryptocurrency Use
A panel reporting to India’s Finance Ministry suggested the country’s regulators have an “open mind” about a governmental cryptocurrency and, at the same time, proposed fines and up to ten years in prison for general use of crypto in the country. The panel, created by the Ministry of Electronics and Information Technology, the Securities and Exchange Board of India, and the Reserve Bank of India, found that there was a serious concern with the “mushrooming of cryptocurrencies almost invariably issued abroad and numerous people in India investing in these,” according to the report.
“All these cryptocurrencies have been created by non-sovereigns,” they complained. “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.”