The Indian government is not looking to ban cryptocurrencies, but it is looking to regulate them — as ‘assets’, but the Securities and Exchange Board of India (SEBI), will handle the cypto ecosystem.
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the jurisdiction of Ministry of Finance , Government of India.
This conforms to what Finance Minister Nirmala Sitharaman said earlier this week about the cryptocurrency Bitcoin not being recognised as a currency for payments in India. Crypto coins are decentralized, highly volatile and almost impossible to track the transaction. However, India is working on its own central bank digital currency (CBDC) that will be governed and monitored by the Reserve Bank of India (RBI).
Securities and Exchange Board of India (SEBI) will will be on the driver seat of the crypto ecosystem in the country. All Indian crypto exchanges will reportedly come under the purview of the SEBI. Crypto buyers will no longer be allowed to hold their crypto assets on foreign exchanges or in private wallets, they will need to declare their crypto assets and keep them on Indian exchanges, according to the cabinet note.
People will be given some time to transfer their holdings to meet these requirements, Once the bill becomes law. Failing to do so could result in penalties within the range of ₹5 crore to ₹20 crore.
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