India is reportedly contemplating proposing a new bill that would open its doors to cryptocurrencies as an asset class but not as a currency while appointing capital market regulators in charge of it.
According to sources familiar with the matter, the country’s Prime Minister Narendra Modi was said to have proposed a legislative strategy that would allow crypto holders ample time to declare how many crypto assets they hold in a bid to conform with the new regulatory framework.
Modi’s current stance on cryptocurrencies could be an effort to compliment his earlier concerns that cryptocurrencies are capable of spoiling youths if bitcoin ends up in the wrong hands.
It is very possible that the bill will refer to Bitcoin and other cryptos as “crypto assets,” rather than as “cryptocurrencies”.
In addition, crypto holders who refuse to comply with the new regulations could bag imprisonment for one year and five months or pay a fine of 200 million rupees, an equivalent of $2.7 million
That’s not all, sources who refused to reveal their identity said, saying the government is likely to stipulate a minimum threshold for crypto investors. That would be to the advantage of small investors.
India’s Cryptocurrency Indifference
Recently, Coinfomania reported that the country proposed an earlier bill that was designed to ban all private cryptocurrencies including BTC, ETH, DOGE, indicating that cryptocurrencies cannot be used as a means of payment.
Despite the uncertainties facing cryptocurrencies and crypto holders in India, this year alone, the country has recorded a 641% increase.
India is currently experiencing a relatively crypto-friendly environment since the supreme court ruled in favor of cryptocurrencies in the country in March 2020. At this time, the crypto market in India has seen massive growth.
Meanwhile, India recently flashed a green light on the possibility of launching a central bank-backed digital currency anytime soon, but that will only happen if the country’s proposed cryptocurrency bill eventually pushes through.
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