₦airaland Forum

India to set maximum penalty for violating crypto norms at fine of $2.7 million or 1.5 years in jail

The country wishes to see all crypto activities take place on platforms regulated by SEBI.

On Tuesday, BloombergQuint (Bloomberg India) reported that the penalty for non-compliance with the Indian government's crypto policies could range from a maximum fine of 20 crore rupees ($2.7 million dollars) or 1.5 years in jail. Prime Minister Narendra Modi will likely give cryptocurrency investors a deadline to comply with new rules and declare their assets. While the regulatory environment in the country holds a high degree of uncertainty, reports have indicated that investors' crypto must soon be held in exchanges operating under the oversight of the Securities and Exchange Board of India, or SEBI.

This would mean that private wallets would not be legal under the proposed legislation, and investors who use them could be subjected to the aforementioned judicial penalties. In addition, Modi's government plans to institute a minimum capital threshold for investing in cryptocurrencies.

India is taking a hard-line stance against crypto due, in part, to the perceived rise in fraud, money laundering and terrorist financing in recent years. Another element, however, is that the competition from privately-owned or privately-issued cryptocurrencies would, in theory, threaten the Reserve Bank of India's plans to launch a digital rupee. The official text from an ongoing controversial crypto bill in the country is as follows:

"To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses."

donald017:
Second to comment

tony0806:
You will see the end of December! You will walk into January 2022 in good health! God will give you uncommon business ideas! It's your season

benuejosh:
If na Nigeria not, we no go hear word. Children of hate will block our hearings with noise.

saintade01:
I just laugh at some of you saying this can't be regulated

"The oyinbo wey do pencil na him also do eraser"

Nothing is impossible in this digital age.

Poopypants:
This is like chasing clouds , the government has no idea where to even start from. How do you chase someone that owns a private wallet when they aren’t even on the grid to begin with

Lumig:

It's happening all over. Crypto needs to be regulated, safeguarded, and be under the government's control otherwise... It will be a potent tool in the hands of terrorists and criminally-minded

vedaxcool:
Government can only regulate what operates under the law! Until cryptocurrency platforms become mainstream, more bans will be carried out against them.