The Indian government intends to ban the circulation of cryptocurrencies with the threat of prison. As noted by MIT Tech Review, it would be a serious limitation in a country where the majority of the population does not have a bank account.

During the last Bitcoin boom in 2017, India hoped to exploit the trend. Then enthusiastic experts had recommended that the cryptocurrency be recognized as legal tender and the government was planning to issue its own digital currency.

The new committee members have published a report, expressing "serious concerns" about the circulation of Bitcoins and other assets with blockchain technology.

The commission aims at prohibiting the possession and negotiation of cryptocurrencies to natural persons and proposes to punish offenders not only with financial penalties, but also with prison sentences of up to 10 years. Indian experts define these financial instruments as "incompatible with the traditional functions of money".

The MIT Tech Review indicates that the commission's conclusions are not final, but in this context India cannot be considered a friendly market for blockchain-based projects.