Towards an enabling framework for cryptocurrency in India

The Bill seeks to prohibit the use of cryptocurrency, and also provides a framework for regulating ODCs as legal tender. There is a complete prohibition on mining, generating, holding, selling, issuing, transferring and disposing cryptocurrency, except for research and experimentation purposes, with the Central Government having powers to further exempt specified activities. The Bill disallows using cryptocurrency as a medium of exchange or as legal tender. This ban extends to the direct and indirect use of cryptocurrency in any form, including buying and selling, providing cryptocurrency-related services and issuing cryptocurrency-related financial products. Additionally, existing holders are required to do away with cryptocurrency in their possession, within a 90-day period. In the event of non-compliance, the Bill provides for strict penalties.