No Ban on Cryptocurrency

No Ban on Cryptocurrency

No Ban on Cryptocurrency

The Indian government is not seeking to outlaw cryptocurrencies in the nation, but rather to regulate them as ‘assets,’ according to a recent report. According to a cabinet note seen by NDTV, the Securities and Exchange Board of India (SEBI) would be in charge of overseeing the country’s financial markets. No Ban on Cryptocurrency

What Nirmala Sitharaman stated earlier this week regarding Bitcoin not being recognised as a currency for payments in India is consistent with this conclusion. While India is working on its own central bank digital currency (CBDC), which would be administered and overseen by the Reserve Bank of India, the United States is working on its own (RBI).

According to reports, the notice also states that people would be required to register their cryptocurrency holdings and retain them on Indian exchanges. They will no longer be able to store cryptocurrency on international exchanges or in private wallets under any circumstances.

People will be allowed a period of time once the measure is signed into law to transfer their assets in order to comply with these criteria. Failure to comply with this requirement might result in fines ranging from Rs. 5 crore to Rs. 20 crore.
Furthermore, India intends to alter the Prevention of Money Laundering Act (PMLA) in order to include measures for cryptocurrency-related conduct. In the words of Sitharaman, the government is keeping a careful eye on the dangers that cryptocurrencies pose. So volatile are digital tokens that even India’s Prime Minister Narendra Modi called for global collaboration from democratic states to regulate the industry and safeguard youngsters in a speech in November. No Ban on Cryptocurrency

In an interview with Business Insider India, Ashish Singhal, the founder and CEO of CoinSwitch Kuber as well as a co-chair of the Blockchain and Crypto Assets Council (BACC), said that the industry has been “actively communicating with all stakeholders” while keeping investor protection at the forefront of its efforts.

No Ban on Cryptocurrency

No Ban on Cryptocurrency

What is the current status of India’s cryptocurrency bill?

On the agenda of the current session of Parliament’s lower house, the Lok Sabha, are proposed regulations on how to govern cryptocurrencies and other components of the crypto industry, such as decentralised autonomous organisations (DAOs), non-fungible tokens (NFTs), and the metaverse. No Ban on Cryptocurrency

According to Sitharaman, the law is now awaiting clearance from the Cabinet before it can be brought to Members of Parliament for consideration (MPs).

WazirX’s head of public policy, governance issues and content, Aritra Sarkhel, told Business Insider during a sponsored webinar that even if the bill is 30-40 percent good, investors – family offices and conventional VC companies — would spend more money into India if anything nice comes out of it.

According to two persons with intimate knowledge of the situation, the Union administration has opted to regulate cryptocurrencies rather than outright prohibiting them, putting to rest worries of a Chinese-style crackdown on digital assets. No Ban on Cryptocurrency

According to the sources, cryptocurrency would be renamed crypto-asset and placed within the regulatory purview of the Securities and Exchange Board of India (Sebi) under the proposed bill, which is expected to be passed soon.

Due to concerns that cryptocurrency trading will be prohibited, the value of cryptocurrencies traded on local exchanges has plummeted. Following a government announcement that a law regulating cryptocurrencies will be introduced, bitcoin plunged more than 13 percent on the Indian trading site WazirX, while Shiba Inu and Dogecoin both sank more than 15 percent. They did, however, recoup a portion of their original worth. No Ban on Cryptocurrency

No Ban on Cryptocurrency

According to various sources, cryptocurrencies may not be fully prohibited in India, and the government may develop a framework to oversee extremely hazardous virtual assets that are traded on exchanges. As a result, investors and other stakeholders have expressed concern about the government’s planned cryptocurrency law, which comes into effect on January 1.

According to livemint.com, which spoke with two persons who were acquainted with the concept, cryptocurrencies might be renamed crypto-assets and would be controlled by the Securities and Exchange Board of India (Sebi) under the proposed law.

Despite the fact that the government has yet to formally declare its intentions for cryptocurrency assets, recent sources indicate that a total prohibition, as in China, would not be imposed. No Ban on Cryptocurrency

Last week, Finance Minister Nirmala Sitharaman provided an important update on the government’s cryptocurrency legislation, hinting that the new legislation has been modified and that it may not be targeted at outright banning cryptocurrencies altogether.

Specifically, she said that the first definition of the cryptocurrency law, which was included as a component of the Lok Sabha agency, was outdated and did not accurately describe the new bill, which is now pending clearance from the government. The new legislation will be presented as soon as it has received approval from the cabinet. No Ban on Cryptocurrency

A BILL TO CLASSIFY CRYPTOCURRENCY AS AN ASSET

In the article by livemint.com, one of the two sources interviewed said that the government’s law is intended at categorising cryptocurrency as an asset in order to guarantee that it does not overlap with the digital currency that will be introduced by the Reserve Bank of India later this year (RBI). No Ban on Cryptocurrency

Furthermore, the Securities and Exchange Board of India (Sebi) is expected to monitor all cryptocurrency exchanges, and infractions might result in monetary fines ranging from Rs 5 crore to Rs 20 crore, as well as jail.

No Ban on Cryptocurrency

According to another source referenced in the newspaper, the administration is expected to propose the measure in Parliament during the third week of the current Winter Session, which is now underway. The bill’s primary goal is to categorise cryptocurrencies in order to distinguish them from the Reserve Bank of India’s digital money, which will also be regulated. No Ban on Cryptocurrency

What this effectively implies is that all bitcoin transactions will be carried out via platforms and exchanges that have been registered with the Sebi in order to reduce the risk of significant fraud, scams, and anomalies. Cryptocurrency exchanges will have a deadline to register with the Securities and Exchange Board of India (Sebi) in order to continue operating effectively.

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ALSO READ: SHOULD WE INVEST IN CRYPTO OR NOT

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