According to reports, the Indian government has proposed to ban the use of cryptocurrency for payments and set a deadline for investors to declare crypto assets. Violators may be arrested without a warrant and do not need to be released on bail. In addition, encryption laws may require a unified Know Your Customer (KYC) process for all encryption exchanges.

Proposed rules in the Indian encryption bill

With the introduction of the cryptocurrency bill Occupy In the Indian parliament, there have been several reports on the contents of the bill, but the government has not yet made these contents public.

although Crypto assets According to reports, the Indian government plans to ban the use of cryptocurrency for payments, Reuters reported on Tuesday citing an unnamed source and a summary of what it saw.

The proposed legislation also states that these rules will be “identifiable.” Violators may be arrested without a warrant without bail. The news media quoted the summary of the bill in detail:

The Indian government is planning to “completely prohibit any individual from using digital currency as a “medium of exchange, store of value, and unit of account” to mine, produce, hold, sell or/or trade all activities.

Although cryptocurrency will not become legal tender in India, it is like Savior, The proposed encryption legislation will give it legal status.

According to sources, self-hosted wallets may be banned. However, as the CEO of a major cryptocurrency exchange in India explained, this may prove difficult.He recently described His expectations Regarding self-custodial wallets and new encryption legislation.

Bloomberg reported on Tuesday, citing people familiar with the matter, that the Indian government also plans to set a deadline to allow investors to declare their cryptocurrency and comply with the new regulations.

In addition, the Economic Times reported on Wednesday that the proposed cryptocurrency legislation will require cryptocurrency exchanges to share their Know Your Customer (KYC) data with regulators and government agencies, including the Securities and Exchange Commission of India (SEBI), Reserve of India Bank of India (RBI) and income tax department.

The news media added that the encryption bill will also require a unified KYC process for all crypto exchanges, and pointed out that exchange platforms currently have their own procedures.

Regarding crypto taxation, the government plans to add cryptocurrency to Article 26A of the Income Tax Act in the upcoming budget. The publication stated that this will “require taxpayers to disclose their cryptocurrency investments in India and abroad. “.

Last week, NDTV reported that it had seen the government’s cabinet document, which listed SEBI as Regulator Monitor cryptocurrency activities in the country. In addition, Indian Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) comfirmed Last week, the Crypto Act has been redesigned from its original version, which aims to ban all cryptocurrencies, including Bitcoin and Ethereum.she also Reply Several parliamentary issues regarding the proposed regulation of cryptocurrencies.

What do you think of India’s reported cryptocurrency regulations? Please let us know in the comments section below.

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