Cryptocurrencies won’t be banned by the Indian government rather they would be regulated as assets. The Securities and Exchange Board Of India (SEBI) is going to lead further as per cabinet note. Nirmala Sitharaman, the Finance Minister had mentioned earlier about Bitcoin as not been foreseen as a method of payment in India and as mentioned earlier, Central Bank’s Digital Currency (CBDC) is the main focus of Indian Government as of now. It would be monitored and governed by Reserve Bank Of India (RBI).
With the use of CBDC,it is clearly stated that citizens are required to mention their crypto assets and would have to keep the same on Indian Exchanges as well. They aren’t going to be further given chance to keep crypto on foreign exchanges or even in the private wallets. To this, it is clearly mentioned about, when the bill becomes law, people would be given some time for transferring their holdings so as to accomplish such requirements. If in case they are unable to transfer their holdings on time then the resulting outcome would be penalties, ranging from ₹5 Crore to ₹20 Crore.
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Prevention Of Money Laundering Act
Prevention of Money Launder Act would be amended by India so as to make provisions for cryptocurrency activity and as per Sitharaman, Government is going to monitor the risks very minutely, which cryptocurrency could bring with them. In addition to this, Prime Minister Narendra Modi also focused on volatile nature of digital tokens in November and for the same mentioning global cooperation from democratic nations for regulating the sector and also saving the youth.
According to Ashish Singhal, CEO and founder of CoinSwitchKuber and co-chair of the Blockchain and CryptoAssets Council (BACC) had mentioned that crypto industry is being involved in communicating with each and every stakeholders, thereby keeping the protection of investors at top.
Position Of Indian Crypto Bill
Crypto Bill at present is revolving around the manner in which cryptocurrencies have to be regulated, including various other sections of crypto as decentralised autonomous organisations (DAOs), non-fungible tokens (NFTs), and also the Metaverse is currently the topic of hot shot discussion of the current session of Parliament in lower house of the Lok Sabha.
In addition to this, Sitharaman had also said that the crypto bill is pending approval from the Cabinet before it could be brought in front of the Members of Parliament (MPs). Also if in case the crypto bill is 30-40% positive then the investors, traditional VC firms, family offices are all going to incur more amount in India as per Aritra Sarkhel.
So the decision to hatch back the investments from crypto would be early and further investments based on the decision of SEBI could be made so that the prospective investors could invest safely.
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