A cabinet note recently shared by the Indian government said the new cryptocurrency law will be regulated by the Securities and Exchange Commission of India (SEBI). It refers to cryptocurrencies as “crypto assets” and Indians can be restricted from trading crypto on foreign platforms.
According to NDTV, the deadline for reporting holdings and transferring them to locally regulated crypto exchanges for Indian holders will be announced shortly.
Limit trading in cryptocurrencies on foreign exchanges
The new documents also announce that SEBI will closely monitor the progress of cryptocurrencies in the country. Hodler India is said to be relieved, but is waiting for more certainty as the bill has yet to be submitted to parliament.
In relation to the proposed lawsuit, violations of the regulations will result in a severe penalty – including 1.5 years’ imprisonment or a civil penalty of up to 5 rupees ($ 667,500). NDTV also reported that violations related to the financing of terrorist offenses will be judged under the provisions of the Anti-Money Laundering Act.
According to local publication Livemint, India is home to over 10 million crypto investors and its population is showing increasing interest in crypto trading. WazirX, one of India’s largest exchanges by trading volume, recently reported increased user activity on their platform.
Indian Finance Minister Nirmala Sitharaman previously raised concerns about domestic cryptocurrency trading, such as the potential for increased fraudulent activity.
A tweet from Prime Minister Narendra Modi on November 18 also sparked speculation about a “ban” after calling for young people to be protected from “corruption” by crypto.
India is also preparing to take responsive measures to curb misleading crypto advertising, however, the government has yet to announce a specific decision highlighting such measures.
Join X1k.co Telegram to keep track of news and comment on this article: t.me/x1kcrypto
Disclaimer: This article is for informational purposes only, not investment advice. Investor should research carefully before making decision. We are not responsible for your investment decision