India bans all private cryptocurrencies, 1 to 10-year jail term for trading Bitcoin, Ethereum, Litecoin or others: Investing in cryptocurrency is now a crime in India. Those who have been dealing in cryptocurrency, including Bitcoin, Ethereum, Litecoin, NEO, DASH, others, will now have to face penal action if they continue to buy or sell the cryptocurrency. The government made the decision after a recommendation from an Inter-Ministerial Committee, a government-formed body to look into the legality of cryptocurrencies and blockchain. Earlier on Monday, the committee handed over the report to the Finance Ministry. After its recommendations, any activity relating to any cryptocurrency will be illegal and could land the responsible entity in jail.
In the report submitted to the government, the committee expressed its concern over the fact that the majority of Indians have been cheated on through the cryptocurrency. It further noted that no country except India has recognised cryptocurrency as a legal tender. Earlier in 2017, China has also banned the crypto trade while the US is looking forward to banning bitcoin.
Reports said that there are over 5 million traders of the cryptocurrency in India till February 2018. Surprisingly, the traders did a business of one billion in a day last year, using 1500 bitcoins. Now, the Inter-Ministerial Committee has recommended one to a ten-year jail term for those involved in buying or selling cryptocurrencies in India.
The report has also recommended that the government can issue digital currency on behalf of the central bank if it wants.