India banning crypto payments could mean jail for violations. In one of the sternest moves against the cryptocurrency market especially Bitcoin. It is reported that over a 1/3 of all cryptomarket transactions are made by Indian people.
Flouting any of these rules would also be “cognisable” which means an arrest without a warrant is possible, and “non-bailable,” it said.
The proposed legislation that would ban the use of cryptocurrencies as a method of payment in India also seeks to make those who infringe the law subject to arrest without a warrant and being held without bail, according to a source and a summary of the bill seen by Reuters.
India banning crypto payments
Prime Minister Narendra Modi’s government has previously flagged that it plans to ban most cryptocurrencies – a move which follows measures by China this September that intensified its crackdown on cryptocurrencies, which it says is related to India crypto crime.
According to the summary of the bill, the Indian government is planning a “general prohibition on all activities by any individual on mining, generating, holding, selling, (or) dealing” in digital currencies as a “medium of exchange, store of value and a unit of account”.
Although the government has previously said it aims to promote blockchain technology, the proposed law will also deal a blow to its use as well as to the non-fungible token market in India, lawyers said.