RBI will regulate issues related to cryptocurrency
The proposed cryptocurrency bill has suggested regulation of private cryptocurrency rather than banning it, according to a Cabinet note circulated by the government. Crypto is not recognised as legal currency in India yet, as per the note. ‘Cryptoasset’: All You Need To Know About New Crypto LegislationThe note suggests that Cryptocurrency is not recognised as legal currency in the country. The legislation also describes Cryptocurrency as Cryptoasset, according to the Cabinet note. Cryptoassets will be dealt with the existing crypto exchange platforms which will be regulated by the Securities and Exchange Board of India (SEBI). A cut-off date will be prescribed for those having cryptoassets to declare and bring under the crypto exchange platforms – which will be regulated by the market regulator.Reserve Bank of India’s proposed virtual currency has not been clubbed with the new crypto legislation. However, the central bank will regulate issues related to cryptocurrency.All those found violating the exchange provisions will be penalised with a criminal imprisonment of upto one and a half years. Penalties in the range of Rs 5 crore to Rs 20 crore may also be levied by the regulator.As a deterrent for those found using the assets for terror related activities, the provisions of the Prevention of Money Laundering Act (PMLA) will be applied with suitable amendments.
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