India plans to regulate private cryptocurrencies rather than ban them, local media outlet NDTV reported citing a cabinet memo.
There have been various speculations regarding crypto in India recently. While the news of the regulation appeared in the first place, then rumors emerged that private cryptos would be banned completely. Now it looks like it’s back to the beginning.
Rumors that India will ban private cryptos have faced strong opposition from the crypto community.
The Securities and Exchange Board of India (SEBI) will be responsible for regulating crypto platforms.
However, there is no plan for India to adopt a Bitcoin (BTC) like El Salvador.
The bill refers to cryptocurrencies as “crypto-assets” to emphasize that they will not be allowed as a means of payment.
There will be a deadline for Indians to declare their cryptocurrency holdings.
Exchanges that do not comply with the new crypto provisions will face fines of up to 20 crore (about $2.6 million). Additionally, stock market managers can face up to one and a half years in prison.
According to the report, the crypto bill is expected to be approved by the end of next week.