Despite multiple rumours from different sources that India is considering an outright ban on cryptocurrency, the Indian government has officially reaffirmed that this is not the case.
Indeed, there has been an air of apprehension in the crypto business before, as everyone anticipated good regulation, only to discover that the crypto bill’s language remained same from last year, reiterating the government’s ambitions to outlaw private crypto. However, NDTV says that a new cryptocurrency law is anticipated to be passed by the Cabinet by the end of next week.
The Indian Government Adopts a Cryptocurrency Note and Establishes a Regulatory Framework. According to the Cabinet note circulated by the government, the new crypto bill will undergo a few changes. They are highlighted in the following list:
Legislation will henceforth refer to cryptocurrencies as ‘crypto assets,’ not cryptocurrency. In India, cryptocurrency will not be accepted as legal cash. Not yet, at least.
Private cryptocurrencies will not be prohibited; they will just be controlled. In India, cryptocurrency will be regulated by the Securities and Exchange Board of India (SEBI).
The Reserve Bank of India’s (RBI) planned virtual money has not been included into the new law. A deadline will be imposed for persons who own crypto assets to transfer them to licenced cryptocurrency trading platforms.
Anyone caught in violation of the prescribed restrictions may face up to 18 months in prison and a fine of between 5 and 20 crore.
Additional updates will be published when they become available. However, Indian crypto aficionados and private crypto asset investors may breathe a sigh of relief for the time being.
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