Private cryptocurrency will be regulated, not banned, will not get Legal Status: Source

Private cryptocurrency will be regulated, not banned, will not get Legal Status: Source - Cryptocurrency Bill: In the midst of discussion of new cryptocurrency bill, sources quoting 'Cryptoasset Bill' have informed that all private cryptos in India will be regulated and not restricted.

Amid reports of banning crypto in India through the new Cryptocurrency Bill, it has now come to light that all private cryptos in the country will be regulated and not banned. Sources have given this information quoting 'Cryptoasset Bill'. The cabinet note circulated by the government on the proposed cryptocurrency bill has suggested regulating private cryptocurrency instead of restricting it. The note also states that crypto will not be recognized as legal currency in India. The cryptocurrency will be handled in conjunction with the existing crypto exchange platform which will be regulated by the Securities and Exchange Board of India (SEBI). A cut-off date will be set for cryptocurrency holders to declare it and bring it under the crypto exchange platform - which will be regulated by the market regulator.

The virtual currency proposed by the Reserve Bank of India (RBI) is not linked to the new crypto bill. However, the central bank will handle issues related to cryptocurrency. Violators of the exchange provisions are liable to imprisonment for up to one and half years. In addition, a fine of Rs.5 crore to Rs.20 crore can be imposed by the regulator.

As a deterrent to those who use these assets for terrorism-related activities, the provisions of the Prevention of Money Laundering Act (PMLA) will apply with appropriate amendments.

The Finance Minister had said in the House to bring a new bill

Significantly, Union Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Tuesday that the government will soon introduce a bill on cryptocurrency after getting the approval from the cabinet. He had said that the bill would come up in the House after the approval of the Cabinet. The government had listed a similar bill in the last session of Parliament (Monsoon), but it was not taken up. Nirmala said, "The first attempt was definitely to bring a bill but, later, many things came into vogue fast, we started working on a new bill.

He said that "serious efforts" were made to bring the bill even during the monsoon session, the proposed bill is likely to be introduced soon. He said that cryptocurrency is not regulated in India and the government Does not collect associated data. He also said that the government, the Reserve Bank and SEBI have been warning the people about cryptocurrency that it could be a "very risky" sector and there is a need to create more awareness in this regard.

In a written reply to another question, Sitharaman had said that the government does not have specific information on fraud related to cryptocurrency and cases of financial fraud are a matter for the state. However, he said that eight cases related to cryptocurrency fraud are being investigated by the Enforcement Directorate.