India is working towards establishing a facilitative framework and launching an official digital currency to be issued by the Reserve Bank of India, through a cryptocurrency bill and the regulation of the official digital currency act.
Under this law, India prohibits all private cryptocurrencies, although it allows for some exceptions to promote the underlying technology of cryptocurrencies and their uses. Earlier, a government committee in India recommended in 2018 banning all private cryptocurrencies, with a punishment of up to 10 years in prison and heavy fines for anyone dealing in digital currencies. In 2018, Indian Finance Minister Arun Jaitley stated that the government does not recognize cryptocurrency as legal tender or currency and will take all measures to eliminate the use of these crypto assets in financing illegal activities or as part of the payment system. Many countries, including the United States, China, Japan, Canada, Venezuela, Estonia, Sweden, and Uruguay, have explored the development of their own digital currencies.
