According to reports, India is no longer aiming to outlaw cryptocurrency, as indicated by a cabinet letter disseminated by the administration. The Securities and Exchange Board of India (SEBI) will regulate activities involving crypto assets.
Cryptocurrencies will not be banned in India, according to a Cabinet note
NDTV reported Thursday that despite rumors that the Indian government is intending to ban cryptocurrencies, a cabinet note disseminated by the government indicated that cryptocurrencies such as Bitcoin and Ethereum will not be banned.
The publication stated that cryptocurrencies are not accepted as legal tender in India:
The legislation also describes cryptocurrency as cryptoasset.
According to the cabinet statement, the crypto exchange platforms will be regulated by The Securities and Exchange Board of India (SEBI) which also regulates securities and commodity markets in India and operates under the jurisdiction of Finance ministry.
Furthermore, a cut-off date will be mandated for people who have cryptoassets to declare and bring under the crypto exchange platforms which will be supervised by the market authority, according to the journal.
All those found violating the exchange provisions will be penalized with a criminal imprisonment of up to one and a half years.
Furthermore, the agency has the authority to impose fines ranging from 50 million rupees to 200 million rupees ($2.67 million).
The provisions of the Prevention of Money Laundering Act would be applied to anyone who uses crypto assets for terror-related activities (PMLA).
According to the news site, India’s central bank digital currency (CBDC) has not been included in the new crypto legislation. The Reserve Bank of India (RBI) is currently developing a digital rupee model, which is likely to be released before the end of the year.
Nirmala Sitharaman, India’s finance minister, answered questions in both the Lok Sabha and the Rajya Sabha, the two houses of India’s parliament, earlier this week. She stated that the crypto bill needs to be rewritten, but she did not specify if cryptocurrencies such as Bitcoin and Ethereum would be prohibited.
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