India will impose a maximum fine of 2.7 million U.S. dollars or 1.5 years in prison for violating cryptocurrency regulations

Tuesday, BloombergQuint (Bloomberg India) Report Penalties for non-compliance with the Indian government’s cryptocurrency policy can range from a fine of up to 200 million rupees ($2.7 million) or 1.5 years in prison. Prime Minister Narendra Modi may give cryptocurrency investors a deadline to comply with the new rules and declare their assets. Although the country’s regulatory environment is highly uncertain, The report stated Investors’ cryptocurrencies must soon be held in exchanges operating under the supervision of the Securities and Exchange Commission of India (SEBI).

This means that private wallets are illegal under the proposed legislation, and investors who use them may be subject to the aforementioned judicial penalties. In addition, the Modi government plans to establish a minimum capital threshold for investing in cryptocurrencies.

India takes a hard line on cryptocurrencies, partly because people think Increase in fraud, money laundering and terrorist financing Last few years. However, another factor is that, theoretically, competition from privately owned or privately issued cryptocurrencies would threaten the Reserve Bank of India’s plans to launch a digital rupee. The official text of an ongoing controversial encryption bill in the country is as follows:

“Create a convenient framework for the creation of an official digital currency issued by the Reserve Bank of India. The bill also attempts to ban all private cryptocurrencies in India; however, it allows certain exceptions to promote the underlying technology and uses of cryptocurrencies.”