Crypto payments could become jailable offense in India

A Reuters report that cited a source has it that 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 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”.

Flouting any of these rules would also be “cognizable” which means an arrest without a warrant is possible, and “non bailable,” it said.

Although the government has previously said it aims to 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.

The government’s plans to crack down heavily on cryptocurrency trading sparked a frenzy in the market and several investors exited with significant losses.

The government now plans to also come down heavily on advertisements that seek to woo new investors, according to Reuters.

Self-custodial wallets that allow people to store digital currencies outside exchanges are also likely to be banned, Reuters added.

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