India is considering appointing its capital markets regulator to oversee cryptocurrencies, according to people with knowledge of the matter told Bloomberg, as authorities look to classify crypto as financial assets.
According to Bloomberg, the new bill will give crypto holders a deadline to declare their digital assets holdings and meet any new rules. The bill is likely to use the term ‘crypto assets rather than ‘cryptocurrencies,’ and won’t refer to the central bank’s plan to create its own digital currency.
Violators can face a fine of up to 200 million rupees ($ 2.6 million) or imprisonment for up to one and a half years.
Bloomberg also claims that the authorities are considering setting a minimum threshold for investment in digital assets to protect small investors.
Earlier, the media reported that citizens of India would be obliged to disclose information about their cryptocurrencies and transfer them to Bitcoin exchanges regulated by SEBI. Non-custodial wallets may be prohibited.
Then the information about the ban of ” private cryptocurrencies”, came which provoked a short-term panic on local Indian crypto platforms.
In November, the Reserve Bank of India announced “serious concerns” regarding cryptocurrencies.
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