India Will Not Ban Cryptocurrencies: Report

According to a report by local media company NDTV, citing a cabinet note, the Indian government plans to regulate private cryptocurrencies instead of banning them.

This will be a huge departure from the agenda of the highly anticipated Indian crypto law, which includes a sweeping ban on cryptocurrencies like Bitcoin. The planned privacy coin ban has met strong resistance from the Indian crypto community.

The Securities and Exchange Commission of India (SEBI) will be responsible for regulating the cryptocurrency trading platforms.

The government also has no plans to follow El Salvador’s example by using Bitcoin as legal tender.

The draft law uses the term “crypto assets” for cryptocurrencies to emphasize that they are not allowed as a means of payment.

There will be a deadline for Indians to join the exchange and report their crypto holdings.

Cryptocurrency exchanges that fail to comply with the new rules can face fines of up to 20 billion yen ($ 2.6 million). Their operators also face a year and a half imprisonment.

The bill is reportedly to be approved by the cabinet by the end of next week.

As India prepares for a paradigm shift on the regulatory front, the country is far from welcoming cryptocurrencies with open arms. According to a recent survey, almost 50% of Indians do not trust the new asset class.