Indian crypto bill could restrict exchange-to-exchange transfers and even launch its own crypto wallet

[ad_1]

India is currently putting in place new regulations to govern the crypto industry. According to an Economic Times report, the upcoming crypto bill could ban exchange-to-exchange transfers altogether. The government can also launch its own crypto wallet and restrict the use of wallets that hide the identity of the owner. India’s upcoming crypto bill, which has yet to be presented to parliament, may not aim to ban cryptocurrencies. However, the Economic Times reports that exchange-to-exchange transfers are likely to see restrictions.

According to the Indian publication, sources believe there will be a blanket ban on cross-exchange trading, restrictions on wallets that obscure the identity of the owner, and the blocking of Google Chrome extensions that allow users to move more than 4 000 cryptos – think MetaMask and other wallets. integrations.

The Indian government could also consider creating a uniform wallet, such as a Demat account, to keep tabs on retail crypto transactions. Crypto exchanges will need to provide quarterly information to the government. country. This may involve stock exchanges opening their books to the government on a quarterly basis.

The goal would be to bring the crypto exchanges on par with other stock or commodity exchanges in the country. And prevent crypto transactions from circumventing the Foreign Exchange Regulation Act (FEMA).

It comes after NDTV reported that the Securities and Exchange Board of India (SEBI) is likely to be mobilized to regulate the crypto industry. The same note also pointed out that investors in India will not be allowed to store their holdings on foreign crypto exchanges or private wallets.

Once the bill becomes law, these people will be given a certain amount of time to make the necessary changes. Failure to do so could result in penalties ranging from ₹ 5 crore to ₹ 20 crore.

India could create its own native crypto wallet The Economic Times report also points out that, since the government will restrict the operation of privately owned wallets, India could create a uniform wallet similar to a demat account for the crypto trading.

El Salvador earlier this year launched a national crypto wallet called El Chivo. However, unlike the Indian plan, the wallet was launched to help the adoption of Bitcoin as legal tender. However, India does not intend to do so. Indian Finance Minister Sitharaman has previously told parliament that India is not considering granting Bitcoin currency status.

That being said, El Chivo solves the same problem India is examining – creating a closed-loop system where crypto transactions can only occur within the designated system. A Chivo Wallet user can transfer funds to another Chivo Wallet, but cannot transfer them to an external wallet.

While this may be an attractive proposition for the government, supporters of the crypto universe argue that it defeats the goal of interoperability, which may limit growth.

SEE ALSO: Ethereum, Solana and other cryptos recover but Bitcoin is still in trouble

INTERVIEW: Old-fashioned regulatory framework for traditional assets won’t work for cryptocurrencies and blockchain, says CrossTower CEO

[ad_2]