Good and Bad news for crypto investors of India! The Government of India is not banning all private cryptocurrencies as proposed earlier this year. According to Reuters, the draft summary of the new crypto bill says there will be a general prohibition on mining, holding, generating, selling, and dealing activities related to it.
Moreover, the term cryptocurrency will be replaced with the ‘crypto assets’ and those possessing these assets would have to abide by the stringent rules and regulations mentioned under the bill.
What’s In New Crypto Bill By India?
The new crypto bill aims to regulate the crypto exchanges, prevent money laundering, and provide protection to the individuals in the digital market. For this, Government will collect the Know Your Customer information of all the investors and individuals dealing and transacting in digital currency.
Three regulators are authorized to do so which includes the Securities and Exchange Board of India, RBI, and the Tax department. This is in regard to monitoring investors operating multiple accounts on multiple platforms including NBFCs, and banks.
Violating Rules Can Lead To Non-Bailable Punishment
A deadline will be set for investors and crypto holders to announce their assets as per the new crypto bill. Anyone violating the rules will be penalized and get arrested without any warrant as these rules are cognizable.
The prison term can go up to one and a half years during which the person would not be given any bail. They may be fined up to $2.7 million as mentioned under the draft summary. However, there is no official confirmation regarding the rules and fines as mentioned.
India has around 15 million people who are investing in cryptocurrency and holding assets worth Rs 45000 crore. The new crypto bill will put everyone under scrutiny and is said to bring losses to them, fears experts.
Founder of Ikigai Law, Anirudh Rastogi has commented on the new law saying it will cause hindrance to blockchain development and NFT. All this is yet to see until the new crypto bill is presented during the Winter Session of Parliament.
Also Read: Is It Really Worth Buying NFT Crypto Coins?