Available information suggests that the regulation of the cryptocurrency market in India will be overseen by the Securities and Exchange Board of India (SEBI). Investors will not be stopped from engaging the cryptocurrency market, according to sources. A report from the Observer Research Foundation revealed that from a technical standpoint, a blanket ban would be hard to implement.
What We Know So Far
The Indian government has also decided to stop crypto transactions on the dark web within its country. News television in India disclosed that cryptocurrencies would be seen as assets. The implication is that those invested in cryptocurrency will have to declare their cryptocurrency assets.
The country will set a deadline for individuals to reveal their crypto assets to the government for regulation. The Reserve Bank Of India, at the end of last month, submitted its plans for a CBDC to the parliament. The regulators have suggested sanctions for those that default regulatory policies. The suggested punishments include short jail terms to millions of rupees in fines.
The former Indian finance secretary responsible for preparing the Crypto Bill revealed that the term ban should not have been included in the bill’s description. He noted that this was an error. Steps have been outlined to educate people on the cryptocurrency market and minimize its utilization for criminal activities.
The Indian government has been working towards cryptocurrency market regulation for weeks. The country has banned digital assets in the past. Looking at antecedents, it is no surprise that many interested stakeholders are worried about the possible outcomes of the current legislation.
Just a week ago, the cryptocurrency market in India went chaotic with rumors of another impending ban. The chaos resulted from the description of the proposed Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. The bill, in its description, stated that the bill would set up a structure for the creation of the country’s CBDC. It also said that the government would be banning all private cryptocurrencies.
The term phrasing private cryptocurrencies caused quite the stir. It was identical to the phrasing used in legislation last year that eventually saw the country ban digital assets. People found solace, however, in the fact that the parliament had had meetings with experts and stakeholders in the cryptocurrency industry.
The Prime Minister had also come out in the open to push for regulation of the emerging market. The CEO of Wazirx, a crypto exchange, Nischal Shetty, at the time encouraged people to give the government the benefit of the doubt and wait for more details. The initial ban on cryptocurrencies was lifted in a court decision last year.
Many crypto investors, in the face of the rumors, held fast and expressed hope for a progressive crypto market regulation. They believed that the meetings with experts and stakeholders were sure to lead to some good outcomes for the community in India. A blockchain company adviser, Rahul Gaitonde, disclosed that it was difficult to know what the government meant by private crypto, stating that there existed a possibility that it meant crypto not vetted by the government.