The union government has proposed to bring cryptocurrencies under the regulatory framework instead of banning them.
The proposed cryptocurrencies bill has suggested that the government will regulate cryptocurrencies instead of banning them. This bill also says that cryptocurrencies will not be the legal currency of India.
Instead, Cryptocurrency will be renamed as crypto assets and SEBI will be regulating crypto assets.
Existing crypto currency exchanges will continue to deal in cryptocurrency, but these exchanges will come under SEBI regulations.
Following the Government notification,
Shiba Inu and other dogecoin both dropped more than 15%.
The government has categorised crypto as an asset and thus there will be no overlap between crypto and the digital currency, which will be launched by RBI.
Now all crypto exchanges will come under sebi regulatory framework and any violations can lead to penalties ranging from 5 to 20 crore and imprisonment.
This will also lead to crypto transactions to pass through SEBI registered platforms and exchanges.
If these assets used for terror related activities then the provision of the prevention of money laundering act (PMLA) will apply with suitable amendments. Source :NDTV and mint.
