India is moving towards imposing maximum penalty on violators of cryptocurrency rules, as the Asian country wants to see all crypto activity take place on SEC-regulated platforms in the country.
Bloomberg Quint (Bloomberg India) reported on Tuesday that the penalty for non-compliance with the Indian government's crypto policies could range from a maximum fine of Rs 20 crore (2.7 crore). million dollars) or imprisonment for a year and a half.
Prime Minister Narendra Modi is likely to give crypto investors a deadline to comply with the new rules and declare their assets. While the regulatory environment in the country holds a high degree of uncertainty, reports have indicated that cryptocurrencies for investors should soon be held on exchanges operating under the supervision of the Securities and Exchange Board of India.
This means that private wallets will not be legal under the proposed legislation, and investors who use them may be subject to the aforementioned judicial penalties. In addition, the Modi government plans to set a minimum capital for investment in cryptocurrencies.
India is taking a hard line against cryptocurrencies, in part due to the notable rise in fraud, money laundering and terrorist financing in recent years. However, there is another element, which is that competition from privately owned or privately issued cryptocurrencies would, in theory, threaten the Reserve Bank of India's plans to launch a digital rupee.
The official text of the controversial ongoing crypto bill in the country is as follows: to create a facilitative framework for creating the official digital currency to be issued by the Reserve Bank, Coin Telegraph reported. Indian. The bill also seeks to ban all private cryptocurrencies in India; However, it does allow some exceptions to promote the underlying technology of cryptocurrencies and their uses.
