Those who violate the rules and regulations of the government can be fined up to Rs 20 crore (Rs 200 million) or jailed for 1.5 years. A person with knowledge of the bill told Bloomberg on condition of anonymity.
Indian government in favor of strict ban on bitcoin
A capital market regulator can be appointed to look after the business related to cryptocurrency in India. Some people monitoring this issue have given information to ‘Bloomberg’. The appointment of a capital market regulator is being considered because the government can give financial asset status to bitcoin or other cryptocurrencies. This is the same asset in which gold, bonds, shares etc. That is, the government will not give the status of rupee-money to cryptocurrency.
The Government of India will bring a bill to regulate cryptocurrency in the Parliament in the current winter session, which has already been said by the Ministry of Finance. ‘Bloomberg’ has said in its report that people holding crypto from the government will be given a deadline within which they will have to share information about their crypto assets with the government. Under the deadline, you will be asked to follow the government rules. In the bill to be brought in Parliament, the name of CryptoAsset will be in place of CryptoKitties. It has been said in the report that in the bill to be brought in Parliament, there will be no ‘reference’ of the Reserve Bank’s plan in which there is talk of creating CBDC i.e. Central Bank Digital Currency. India’s digital currency is not mentioned in the bill.
strict action against violation
Those who violate the rules and regulations of the government can be fined up to Rs 20 crore (Rs 200 million) or jailed for 1.5 years. A person with knowledge of the bill told Bloomberg on condition of anonymity. The government can set a minimum limit in the bill related to cryptoasset that a person can invest as a financial asset. Keeping in mind the interests of small investors, the government can take this step.
What did the Finance Ministry say
Finance Minister Nirmala Sitharaman had recently said that some additional work has been done on the previous bill which was proposed. The bill proposes to ban all private cryptocurrencies. Here private cryptocurrency means bitcoin, ether or dogecoin. In the new bill, a minimum limit for holding cryptocurrency will be fixed, beyond which no person will be entitled to invest. Bitcoin will not be given the status of any currency in the country, the government can put such a proposal in the Parliament through a bill.
crypto market in india
By June 2021, the cryptocurrency market in India has grown by 641 percent. This information has been given by Chainalysis, an organization doing crypto analysis. This was told in an October report. The report also says that lakhs of people in India have invested crores of rupees in cryptocurrencies. Now the government is considering taking tax on the income earned from digital currency. It is being said that the government will bring strict laws against transactions with any kind of virtual coins because the business of Cryptocurrency is completely spread without any regulation.
In the beginning of November, Prime Minister Narendra Modi had a meeting regarding digital currency. In the meeting, he had said that the crypto market without regulation cannot be given a free hand through which people do money laundering. The use of cryptocurrencies can also be used in the funding of terrorism, on which serious concern was expressed.
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