India is no longer planning to ban cryptocurrency, a cabinet
note circulated by the government reportedly indicates. Activities
relating to crypto assets will be regulated by the Securities and
Exchange Board of India (SEBI).
Crypto Will Not Be Banned in India, Cabinet Note Indicates
Despite reports
of the Indian government planning to ban cryptocurrencies, NDTV
reported Thursday that a cabinet note circulated by the government
indicates that cryptocurrencies, like bitcoin and ether, will not be
banned.
Emphasizing that cryptocurrency is not recognized as legal currency in India, the publication noted:
The legislation also describes cryptocurrency as cryptoasset.
According to the cabinet note, crypto exchange platforms will be
regulated by the Securities and Exchange Board of India (SEBI), the
regulatory body for securities and commodity markets in India under the
jurisdiction of the Ministry of Finance.
In addition, “A cut-off date will be prescribed for those having
cryptoassets to declare and bring under the crypto exchange platforms —
which will be regulated by the market regulator,” the publication added,
elaborating:
All those found violating the exchange provisions will be penalized with a criminal imprisonment of up to one and a half years.
In addition, the regulator may levy penalties in the range of 50 million rupees to 200 million rupees ($2.67 million).
Anyone using crypto assets for terror-related activities will be
punished under the provisions of the Prevention of Money Laundering Act
(PMLA).
Furthermore, India’s central bank digital currency (CBDC) has not
been clubbed with the new crypto legislation, the news outlet noted. The
country’s central bank, the Reserve Bank of India (RBI), is currently
working on a digital rupee model that is expected to be unveiled by year-end.
Earlier this week, India’s finance minister, Nirmala Sitharaman, answered
some questions in both Lok Sabha and Rajya Sabha, the two houses of
India’s parliament. She said that the crypto bill needed to be reworked but did not say whether cryptocurrencies, like bitcoin and ether, will be banned.
source link : https://news.bitcoin.com/indias-cabinet-note-no-crypto-ban-government-will-regulate-crypto-assets/
