India's national blockchain strategy is designed to actively introduce digital technologies in the country

Endy Callahan

The Indian government is developing a national strategy on the blockchain. It will be aimed at active implementation of distributed registry technology.

Officials ' goals for blockchain development

The head of the Ministry of economy and information technology Sanjay Dhotre said: "Blockchain is our priority area of research." Banking, management, cybersecurity and finance are likely areas of technology use.

The Agency, together with other institutions, has developed a blockchain structure. On its basis the decision on authentication of documents on education is created. In addition, "proof of concept" developments for hotel check-in and vehicle lifecycle management are underway.

The country's leadership is studying a draft law banning all cryptocurrencies. Thus, the reserve Bank in April 2018 issued an order to ban services for legal entities and individuals that are associated with digital money.

States of India working to create blockchain policy

Before that, there was information about Tamil Nadu's development of state-level policies related to blockchain and artificial intelligence. It is projected to involve basic rules and regulations describing how state authorities will be able to use advanced technology to manage and deliver services.

In early 2019, a draft blockchain policy plan was unveiled in South India, which aims to build an ecosystem for research institutions and start-up businesses. According to reports, the document focuses on projects that are dedicated to the creation of applications for the pharmaceutical, blockchain, financial and banking sectors, as well as logistics.

the Indian authorities stance on cryptocurrencies

India is taking a course on the development of blockchain, while its attitude towards cryptocurrencies is very hostile. In the summer, the government of the country provided a draft law called "Prohibition of cryptocurrencies and official regulation of digital money." The document aims to completely ban digital money in India, it regulates the introduction of the "digital rupee".

A working group under the Indian government has recommended banning cryptocurrencies in the country

the Economic Affairs Secretary and Finance Secretary of India, Subhash Chandra Garg, who heads a working group under the Indian government, advised the country's leadership to ban all cryptocurrencies. The exception can be only tokens, the emission of which will be engaged in the Central Bank of the country.

There was an initiative to significantly toughen the punishment for the use of cryptocurrencies. It may be a sentence of up to 10 years or fines of up to $ 3.63 million. The group sent a draft law to the Cabinet, which was leaked Online.In their conclusion, the officials indicated: "There is no value at the core of cryptocurrencies." Now the Cabinet of Ministers plans to discuss the initiative of experts with financial regulators, the decision on further actions will be made later.

Representatives of the cryptocurrency industry told Indian officials that a general ban would only slow down the development of blockchain in the state and set its development back years.

India's largest cryptocurrency exchange closes

Indian crypto exchange Koinex reported that it stops its activities due to legal uncertainty in the state and difficulties in the banking sector. The management of the platform said that banks and payment organizations refuse to provide services and block transactions related to the exchange of digital money.

A representative of Koinex noted: "For 14 months, we have been experiencing tremendous difficulties in doing business in the field of digital assets. First of all, this is due to the closure of Bank accounts, which are used to store customers ' money."

In the spring of 2018, the Reserve Bank of India issued a ban on the provision of services by controlled organizations to legal entities and individuals whose activities are related to cryptocurrencies. Koinex reported a significant reduction in trading after reports that Indian citizens who made transactions with digital money can receive up to 10 years in prison. Similar opposition to trading platforms is observed in China. In the article "Chinese authorities against crypto-exchanges" you can read more about it.In September last year, the restrictive policy of the Central Bank of India in relation to digital assets caused the closure of the Zebpay crypto exchange. In the spring of 2019, the Coindelta trading platform also suspended its activities.

Details of the draft law banning cryptographic currencies in India

The text of a draft law that protects digital money in India has appeared on the Internet. There is no proof that the document is genuine. It defines cryptographic currencies as "any token, data, or code that is not official money, obtained by cryptography or other methods, and has a digital expression of value."

The Reserve Bank of India plans to issue a digital rupee that will serve as a means of payment. Other systems that meet the definition of digital money will be banned.

The bill states: "It is strictly forbidden in India to create, mine, store, sell or have any relationship with cryptographic currencies." The ban does not apply to decentralized technologies that do not involve the use of digital money. Violation of the law will result in a fine or imprisonment.

India has joined the list of countries that support the development of blockchain technology, but prohibit cryptocurrencies. Fortunately, there are few such States and people from many corners of the world can take advantage of digital money. Our portal publishes the latest information from the world of cryptocurrencies. Read the news and you will always be up to date!