RBI will regulate issues related to cryptocurrency The proposed cryptocurrency bill has suggested regulation of private cryptocurrency rather than banning it, according to a Cabinet note circulated by the government.
Crypto is not recognised as legal currency in India yet, as per the note.
The note suggests that Cryptocurrency is not recognised as legal currency in the country.
The legislation also describes Cryptocurrency as Cryptoasset, according to the Cabinetnote.Cryptoassets will be dealt with the existing crypto exchange platforms which will be regulated by the Securities and Exchange Board of India (SEBI).
A cut-off date will be prescribed for those having cryptoassets to declareand bring under the crypto exchange platforms - which will be regulated by the market regulator.Reserve Bank of India's proposed virtual currencyhas not been clubbed with the new crypto legislation.
However, the central bank will regulate issues related to cryptocurrency.All those found violating the exchange provisions will be penalised with a criminal imprisonment of upto one and a half years.
Penalties in the range of Rs5 crore to Rs20 crore may also be levied by the regulator.As a deterrent for those found using theassets for terror related activities, the provisions of the Prevention of Money Laundering Act (PMLA) will be appliedwith suitable amendments.