You could be fined or jailed for holding crypto

• Govt panel recommends ban on virtual cryptocurrencies, so if you still have some crypto units lying somewhere, we tell you what to do with them
• The committee is favourable towards launching an official digital currency.

A high-level government panel on virtual cryptocurrencies has recommended a ban on all virtual cryptocurrenciesin India. By and large, these include Bitcoin and Ripple which are not under government control. The committee submitted its report on 23 July 2019, along with a proposed draft bill, Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019.

However, the move has not come as a surprise. “The writing was on the wall regarding cryptocurrencies since April last year, when the Reserve Bank of India (RBI) barred banks and financial institutions from dealing with cryptocurrencies. That was just the trailer, this report and draft bill have crystallised this matter now. If this proposal is approved, India will join the countries which have banned cryptocurrencies," said Nirav Maniar from International Business Advisors (IBA), an accounting, tax and legal advisory firm.

The committee is, however, favourable towards launching an official digital currency. “As virtual currency and its underlying technology is still evolving, the group has proposed that the government may establish a standing committee to revisit the issues addressed in the report as and when required," it said.

The ban on virtual currencies comes along with a fine of ₹25 croreand imprisonment up to 10 years for any activity related to virtual currencies, which is carried out by individuals or companies. So if you have a few crypto units lying forgotten in some account, there may be consequences to bear. We tell you what you should do and what such a law entails.