No crypto ban in India – SEBI would be called upon to regulate the sector

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The Indian government is not seeking to ban cryptocurrencies, but to regulate them as “assets”. All Indian crypto exchanges would fall under the jurisdiction of the Securities and Exchange Board of India (SEBI). Citizens will no longer be allowed to hold their crypto assets on foreign exchanges or in private wallets, according to the firm’s memo seen by NDTV. The Indian government is not seeking to ban cryptocurrencies in the country, but is seeking to regulate them – as “assets”. The country’s market watchdog, the Securities and Exchange Board of India (SEBI), will be at the helm, according to a cabinet memo seen by NDTV,

This is in line with what Finance Minister Nirmala Sitharama said earlier this week about Bitcoin not being recognized as a currency for payments in India. India is, however, working on its own central bank digital currency (CBDC) which will be governed and overseen by the Reserve Bank of India (RBI).

The note also reportedly pointed out that citizens will have to declare their crypto assets and keep them on Indian stock exchanges. They will no longer be allowed to hold cryptos on foreign exchanges or in private wallets.

Once the bill becomes law, people will have a certain amount of time to transfer their assets in order to meet these requirements. Failure to do so could result in penalties ranging from ₹ 5 crore to ₹ 20 crore.

Additionally, India is considering amending its Money Laundering Prevention Act (PMLA) to make provision for cryptocurrency activity. According to Sitharaman, the government is closely monitoring the risks of cryptocurrencies. Even Prime Minister Narendra Modi highlighted the volatile nature of digital tokens in November, calling for global cooperation from democratic nations to regulate the sector and protect youth.

“The industry has actively communicated with all stakeholders 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 is India’s crypto bill at? India’s proposed laws on how to regulate cryptocurrencies and other aspects of the crypto industry – including Decentralized Autonomous Organizations (DAOs), Non-Fungible Tokens (NFTs), and the Metaverse – are up to the agenda of the current session of Parliament in the lower house. , the Lok Sabha.

According to Sitharaman, the bill is awaiting Cabinet approval before it can be presented to Members of Parliament (MP).

“Even if the bill is 30-40% positive, investors – family offices, traditional venture capital firms – will invest more money in India, if something positive comes out,” said Aritra Sarkhel, manager public policies, governance issues and WazirX content. Business Insider during a sponsored webinar.

SEE ALSO: The lawyer behind the overturning of India’s crypto ban in 2018 did not rule out going to court again

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