India’s stance on compliance with crypto laws remains unshaken as the country has proposed legislation that will see offenders of the law paying a fine of about $2.7million or even up to a year and a half jail time sentence.
Non-compliance with the Indian government’s crypto laws could result in a fine of up to 20 crore rupees ($2.7 million USD) or 1.5 years in prison according to BloombergQuint (Bloomberg India),
Prime Minister Narendra Modi is expected to set a deadline for cryptocurrency investors to comply with new restrictions and report their holdings.
Despite the fact that the country’s regulatory climate is fraught with uncertainties, sources suggest that investors’ crypto will soon be held in exchanges regulated by the Securities and Exchange Board of India, or SEBI.
As a result, under the proposed legislation, private wallets would be illegal, and investors who used them could face the aforementioned judicial penalties. In addition, Modi’s government intends to impose a minimum capital requirement for cryptocurrency investments.
India’s stance on Cryptocurrency
India is taking a strong position against cryptocurrency, citing a growth in fraud, money laundering, and terrorist financing in the sector in recent years as justification.
However, competition from privately-owned or privately-issued cryptocurrencies might theoretically jeopardize the Reserve Bank of India’s efforts to develop a digital rupee. The official text of a controversial crypto law now being debated in the country is as follows:
“To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
