The Indian government does not want to ban cryptocurrencies, but rather regulate them as “assets”.
All Indian cryptocurrency exchanges are reported to be under the control of the Securities and Exchange Board of India (SEBI).
Citizens can no longer store their crypto assets in currencies or private wallets, according to NDTV’s cabinet note.
The Indian government is not trying to ban cryptocurrencies in the country, but to regulate them as “assets”. The country’s market regulator, the Securities and Exchange Board of India (SEBI), will be at the forefront, according to a cabinet note from NDTV.
This confirms to what Finance Minister Nirmala Sitharaman said earlier this week about the fact that Bitcoin is not recognized as a currency for payments in India. However, India is working on its own central bank digital currency (CBDC) which is managed and monitored by the Reserve Bank of India (RBI).
The note also highlights the need for citizens to declare their crypto assets and keep them on Indian exchanges. They will no longer allowed to hold crypto in foreign exchange or in private wallets.
Once the bill goes into effect, people will have time to transfer their property to meet these requirements. Failure to do so may result in fines ranging from 5 crore to ₹20 crore.
Additionally, India plans to amend its Money Laundering Prevention Act (PMLA) to include provisions on cryptocurrency activities. According to Sitharaman, the government is closely monitoring the risks of cryptocurrencies. Even Prime Minister Narendra Modi highlighted the volatility of digital tokens in November called for democratic nations to work together around the world to regulate the sector and protect youth.
The industry has been actively communicating with all stakeholders while keeping investor protection at the forefront,” Ashish Singhal, founder of CoinDCX and co-chair of the Blockchain and Crypto Assets Council (BACC), told Business Insider India.
Where does India’s crypto bill stand?
India’s proposed laws on how to regulate cryptocurrency and other aspects of the cryptocurrency industry – including Decentralized Autonomous Organizations (DAOs), Non-fungible Tokens (NFTs), and the Metaverse – are on the agenda of the current session of Parliament in the lower house, the Lok Sabha.
According to Sitharaman, the bill awaits Cabinet approval before it can be presented to Members of Parliament (MP).
Even if the account is 30-40% positive, investors – family offices, traditional venture capital firms – will put more money in India, if something positive comes out, WazirX governance and content issues, Aritra Sarkhel told Business Insider US during a sponsored webinar.
