So, Individuals and corporations going against government bill rules on crypto finance will have to pay fines up to ₹ 20 crore. Also, with a jail term of 1.5 years. This is according to the proposed legislation that seeks to regulate cryptocurrency in India.
Whereby, All private cryptocurrency will pass through some regulations but not an outright ban. But, crypto will not be considered as currency or legal tender. Consequently, there’s a new term for “cryptocurrency” by the legislation, which is “cryptoasset”.
Also, The bill targets to reduce financial stability risk through perfectly ring-fencing the formal financial sector from crypto assets.
More so, The government wants a “general prohibition on all activities by any individual on…”
“mining, generating, holding, selling, (or) dealing” in digital currencies as a
“medium of exchange, store of value and a unit of account”.
Additionally, The bill is for consumers and investor protection. That’s a perfect way to prevent tax evasion and money laundering. So, Not following these set of rules will result in non-bailable arrest without a warrant.
More so, Cryptoassets are under the regulations by the the Securities and Exchange Board of India (SEBI). However, The Reserve Bank of India’s virtual currency is yet to club with this bill. The central bank will regulate any issues concerning digital currencies. Moreover, This bill will mean that the central government can exclude certain activities in the public interest.
Furthermore, a date is already mapped out for those having these assets to declare or submit it under regulation and exchanges. So, this is according to the draft bill.
Additionally, The size of crypto assets in India is about ₹ 45,000 crore with about 15 million investors.
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