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Media: India will regulate cryptocurrencies instead of banning them

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Indian citizens will be required to disclose information about their digital assets and transfer them to the Securities and Exchange Board of India SEBI-regulated crypto exchanges. The accompanying note to the draft law on cryptocurrencies under consideration by the government contained such information, writes NDTV.

Furthermore, investors will have a certain amount of time to fulfill the requirements. Authorities may ban non-custodial wallets, according to the media. Thus, the latter will be a consequence of the fight against money laundering and terrorist financing.

Information about the ban on most “private cryptocurrencies”, which provoked a short-term panic on local cryptocurrency platforms, is unconfirmed.

Suspending the joint development of CBDC

According to the publication, the document proposes to treat cryptocurrencies as assets; and not be considered as legal tender. Also, to give SEBI the authority to supervise local cryptocurrency exchanges.

The government will suspend the joint development of central bank digital currency (CBDC) with the Reserve Bank of India (RBI) and focus on regulating the cryptocurrency industry.

In addition, the news caused people to have doubts. Some would prefer to pay taxes, rather than “become an outcast”. Others expressed worries, because of a possible ban on the use of non-custodial wallets.

No plans to recognize BTC as a currency

Recall that previously, the Indian authorities announced no plans to recognize Bitcoin (BTC) as a currency. Among other bills, parliamentarians will have to consider the law on the regulation of cryptocurrencies. Expectedly, they will submit it by February 2022.

On the first day of the parliamentary session, the government also received questions about plans to introduce a central bank digital currency (CBDC), according to The Economic Times.

The Ministry of Finance in response informed lawmakers that the Reserve Bank of India (RBI) is developing a phased strategy for the implementation of CBDC and is exploring use cases.

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