India’s content of crypto legislation has been leaked, could ban crypto payments, declare assets and introduce new KYC rules
With a bill on cryptocurrencies awaiting approval in the Indian Parliament, there have been several reports of the bill’s content that the government has not made public.
Although crypto assets are expected to be regulated, the Indian government plans to ban crypto payments, Reuters reported Tuesday, citing an anonymous source.
The proposed law also states that offenders can be arrested without a warrant and detained without bail:
“The Government of India plans to ban all activities by any person related to mining, creating, holding, selling or trading digital currency as a medium of exchange, store of value, etc. Value and unit of account. “
While cryptocurrencies are not considered legal tender in India like in El Salvador, the new law will give cryptocurrencies legal status.
According to the source, wallets for self-custody could be banned. However, WazirX CEO Nischal Shetty said this can be difficult to enforce.
The Indian government is also planning to set a deadline for investors to declare their cryptocurrencies and comply with the new rules.
In addition, The Economic Times reported on Wednesday (Dec. 8) that the bill requires crypto exchanges to share their identity verification (KYC) data with regulators and government agencies, including the Securities and Exchange Commission of India (SEBI), the Reserve Bank of India ( RBI) and the income tax department.
The Economic Times added the bill would also call for a unified KYC process for all crypto exchanges.
Regarding crypto taxation, the government plans to include cryptocurrencies in Section 26A of the Income Tax Act, noting that doing so would require “taxpayers to disclose crypto investments” to their deaths both in India and abroad.
Last week, Bitcoin magazine reports that the bill will be regulated by the Securities and Exchange Board of India (SEBI). Additionally, Indian Finance Minister Nirmala Sitharaman confirmed last week that the bill had been revised from an earlier version to ban all cryptocurrencies, including Bitcoin and Ether.
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