India has become a hotbed for cryptocurrency activity over the last few years. As such, many are asking the question; is India banning crypto? It seems that India has plans to ban crypto. So, let's take a closer look at what’s happening in India, and find out if the government is really banning cryptocurrency.
Is crypto banned in India?
There is no ban on crypto in India.
During Parliament's Winter Session, the government was considering introducing a bill to outlaw "private" cryptocurrencies. Interestingly enough, it turns out that the government is not outright banning the crypto sector, but instead regulating it.
The news came as a relief to the Indian crypto community. They had been worried that the government would introduce a blanket ban.
Ahead of the Winter Session, the government had expressed concern about the growing popularity of cryptocurrencies in India.
Earlier this month, Prime Minister Narendra Modi had sought the opinion of the country’s central bank, the Reserve Bank of India, and the Securities and Exchange Board of India (Sebi) regarding the issue.
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Is India Going to Ban Crypto?
The Indian government is not going to ban crypto. It’s looking to regulate them as “assets”. The markets’ watchdog, the Securities and Exchange Board of India (SEBI), will be in charge of the regulation.
The new government policy will require citizens to declare their crypto assets and hold them on Indian exchanges. They'll no longer be allowed to keep crypto on foreign exchanges or in private wallets.
The government has decided that when the law takes effect, it will provide people with time to transfer their holdings to meet the requirements. Those who fail to do so may face penalties within the range of ₹5 crore to ₹20 crore.
Meanwhile, India is working on its own central bank digital currency (CBDC) that will be governed and monitored by the Reserve Bank of India (RBI).
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