BloombergQuint (Bloomberg India) reported on Tuesday that fines for non-compliance with the Indian government’s cryptocurrency policy could range from a maximum fine of 20 crores ($ 2.7 million) to 1.5 years in prison. Prime Minister Narendra Modi is likely to set a deadline for crypto investors to comply with the new rules and declare their assets. While the country’s regulatory environment has a high degree of uncertainty, reports have indicated that investors’ cryptocurrencies will soon have to be held on exchanges overseen by the Securities and Exchange Board of India (SEBI).

This means that private portfolios will not be legal under the proposed legislation and investors who use them could face the legal penalties listed above. In addition, the Modi government plans to introduce a minimum capital for investment in cryptocurrencies.

India has taken a tough stance on cryptocurrencies, in part due to the notable rise in fraud, money laundering and terrorist financing in recent years. However, there is another element in that competition from private or private cryptocurrencies theoretically threatens the plans of the Reserve Bank of India to launch the digital rupee. The official text of the country’s controversial cryptocurrency bill is as follows:

“To create a favorable foundation for the creation of an official digital currency to be issued by the Reserve Bank of India. The bill also aims to ban all private cryptocurrencies in India; however, it allows some exceptions to improve the underlying technology of cryptocurrencies and their use. “

Source: CoinTelegraph