As per the Indian crypto law that is not out yet, the Central Government is taking into account the fact to offer digital currency holders of India a deadline for declaration of assets and become flexible with the upcoming new regulations on crypto in India. Notably, the Securities and Exchange Board of India (SEBI) will be responsible for the regulation of digital currency in India.
Changes Brought By The New Indian Crypto Law
As per the recently passed cabinet note, the word “crypto asset” will be pout instead of digital currencies in addition with a clear distinction of the same from the plans of digital currencies which is about the CBDC (Central Bank Digital Currency) that the Reserve Bank of India and the government aim to begin by the early of 2022.
As per reports, as a punishment of any kind of law violation regarding the digital currency, a fine of Rs 20 crore, or nearly $2.7 million, or also an imprisonment for 1.5 years will be levied on the user. Along with this, the latest Indian crypto law sets a minimum limit or threshold in respect to crypto investing for preventing the small investors from making big losses.
While the Indian government and renowned industrialists such as Mukesh Ambani are highly bullish on the cryptocurrency’s underlying technology which is blockchain. The finance minister, Nirmala Sitharaman stated that the government has no plans of supporting the digital currency space in the nation, along with not identifying it as a legal currency.
Increasing by more than 641% in 2021, the Indian crypto industry has witnessed a rise to a great extent as per reports. As the 7th most “crypto-aware” nation around the globe, and second in respect to the number of crypto owners out of 154 nations according to the 2021 Global Crypto Adoption Index in August 2021, the Indian crypto industry is a thriving and vibrant ecosystem.
The central government has for long, repeated the potential harms of unregulated digital currencies, which include terror funding and many more. While the government is changing the old bill, which had stated to ban all private cryptos, to factor new dimensions, post which it will be offered in the parliament. This will also have taxations on transactions that will be undertaken by these cryptocurrencies.
The Indian Crypto Law As Of Now In A Nutshell
The proposed Indian crypto law may incorporate tougher measures for the use of crypto that will include time in jail for those who do not abide by the law.
- The government is aiming a “general prohibition on all activities by any individual on mining, generating, holding, selling, (or) dealing” in cryptocurrencies as a “medium of exchange, store of value and a unit of account,” as per the summary of the bill.
- The report further added that users who are found in violation could encounter arrest without any warrant, which could also be “non-bailable.”
- As per the previous report, the capital markets regulator of India, SEBI (Securities and Exchange Board of India), will also be the regulator for crypto assets, as per reports. Violators of exchange provisions could even face a jail term and also fines of up to 200 million rupees which is approximately $2.65 million.
- The report arrives as a blow to expectations that the government of India might adopt a more relaxed stand on crypto.
The Bottom Line
Cryptocurrency has been facing many ups and downs in India, as the central government is aiming to regulate the use of the same in India. The new crypto bill will be presented in the parliament in this winter session for the law to pass. But as per reports, the new Indian crypto law has turned out to be more tougher than its previous amendments. The above is a glimpse of the law.
Frequently Asked Questions On Indian Crypto Law
1. Is cryptocurrency legal in India?
The answer is cryptocurrency legal in India 2021, as of now, there is no proper legislation on crypto in India. Here it is neither legal nor illegal. But a new bill will be placed in this winter parliament session that will discuss]the regulators of crypto in India.
2. Will crypto get banned in India?
There are no details as such about the crypto ban in India. Yes, private cryptos may not be allowed anymore to operate in India.
3. Is crypto taxable in India?
In India, there are no prominent regulations on the taxation of crypto in the Income-Tax Act, 1961. But taxpayers are required to report transactions if they have invested in cryptos and also received profits from those investments.
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