Report – Regulation

India no longer plans to ban cryptocurrencies, says a cabinet note circulated by the government. Activities related to crypto assets are regulated by the Securities and Exchange Board of India (SEBI).

Crypto will not be banned in India, says cabinet note

Despite Reports The Indian government is planning to ban cryptocurrencies, NDTV reported on Thursday that a cabinet note circulated by the government indicates that cryptocurrencies such as Bitcoin and Ether will not be banned.

The publication emphasized that cryptocurrency is not recognized as a legal currency in India, noting:

The legislation also describes cryptocurrency as a cryptoasset.

According to the Cabinet note, crypto exchange platforms are regulated by the Securities and Exchange Board of India (SEBI), the regulator of securities and commodities markets in India, under the Ministry of Finance.

Additionally, “a deadline will be mandated for those who own crypto assets to declare and accommodate the crypto exchange platforms – which are regulated by the market regulator,” the publication added, stating:

Anyone who violates the foreign exchange regulations is punished with a prison sentence of up to one and a half years.

Additionally, the regulator can impose penalties ranging from 50 million rupees to 200 million rupees ($2.67 million).

Anyone using crypto assets for terrorist activities will be punished under the provisions of the Prevention of Money Laundering Act (PMLA).

Additionally, the Central Bank of India digital currency (CBDC) has not been burdened with the new crypto legislation, the news agency noted. The country's central bank, the Reserve Bank of India (RBI), is currently working on one digital rupee Model that is expected to be presented at the end of the year.

Earlier this week, India's Finance Minister Nirmala Sitharaman replied some questions in both Lok Sabha and Rajya Sabha, the two houses of the Indian Parliament. She said that the crypto bill revised but did not say whether cryptocurrencies such as Bitcoin and Ether would be banned.

Do you think India has completely abandoned its plan to ban cryptocurrencies like Bitcoin and Ether? Let us know in the comments section below.

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