The union government will probably give Indian cryptocurrency holders a deadline in order to declare their assets and to follow the new rules, according to a Bloomberg report that cited people familiar with the matter. Notably, SEBI (Securities and Exchange Board of India) will reportedly be asked to oversee and regulate cryptocurrencies, given that it can potentially be classified as a financial asset.
A recently circulated cabinet note said that the term 'crypto assets' will be put in place instead of cryptocurrencies, along with a clear distinguishment of the same from the digital currency plans (Central Bank Digital Currency, or CBDC) that the government and RBI intend to introduce early next year.
Penalty if rules are violated
A penalty of $2.7 million or imprisonment of 1.5 years will be imposed upon violation of rules as a punishment, reported Bloomberg. Along with this, setting a minimum threshold or limit in regards to investing in crypto assets in order to safeguard small investor is also in the works.
While many experts and industry giants like Mukesh Ambani are extremely bullish blockchain technology, the finance minister clarified that the government has no immediate plans of bolstering the cryptocurrency sector in the country, in addition to not recognising it as legal currency.
