The Indian Government Doesn’t Plan to Ban Cryptocurrencies, But It Wants Them regulate. The country’s financial watchdog, the Securities and Exchange Board of India (SEBI), will lead this process.
India is still very conservative
The above is in line with what Finance Minister Nirmala Sitharaman said earlier this week about Bitcoin not being recognized as a payment currency in India. However, India is working on its own central bank digital currency that will be managed and controlled by the Reserve Bank of India (RBI).
Some see the government’s statements as something positive, but they are subject to very strict rules. For example, citizens are reportedly required to declare all their crypto assets and they are only allowed to hold the tokens on Indian exchanges. They are therefore no longer allowed to hold crypto on foreign exchanges or in wallets.
Once the bill goes into effect, people will be given some time to transfer their assets to meet these requirements. Failure to do so can lead to heavy fines.
India is very concerned about money laundering via cryptocurrencies. The government therefore keeps a close eye on cryptos. For example, the country’s prime minister, Narendra Modi, emphasized the volatile nature of the digital tokens. He also called for market regulation and the protection of youth from cryptos.
