Cryptocurrency: The Union government led by Prime Minister Narendra Modi is planning to come up with a bill that wants people to voluntarily declare all the crypto assets or face huge penalties. To everyone’s shock the Modi government seems to be taking stringent action against people who are holding cryptocurrency!
The Union government will give crypto holders a deadline to declare their assets. So that they can meet any new rules, according to the sources asking not to be identified as the discussions are private. Authorities are planning to classify cryptocurrencies as financial assets and the Indian government is considering appointing its capital markets regulator.
According to Bloomberg news portal, India is considering appointing its capital markets regulator to oversee cryptocurrencies, according to people with knowledge of the matter, as authorities look to classify them as financial assets. Modi’s government, which plans to introduce legislation in the on-going parliament session, will probably give crypto holders a deadline to declare their assets and meet any new rules, the people said, asking not to be identified as the discussions are private. The bill is likely to use the term ‘cryptoassets’ rather than ‘cryptocurrencies,’ and won’t refer to the central bank’s plan to create its own digital currency, one of the people said.
Any violators could be fined as much as 200 million rupees ($2.7 million) or imprisoned for 1.5 years, according to the proposals, the people said. The government may also consider prescribing a minimum threshold for investing in crypto assets to safeguard small investors.
Finance Minister Nirmala Sitharaman said last week the government has reworked an earlier bill — which had proposed banning all private cryptocurrencies — to factor in new developments. There was no proposal to recognize Bitcoin as a currency in the country, she added.
The crypto market in India has grown 641 per cent in the year through June 2021, according to an October report from Chainalysis, a crypto-analysis firm. The government is now considering taxing gains from digital currencies, and there have been calls to impose stricter rules for transactions in virtual coins due to the unregulated nature of the business.
Soon, the Union government is planning to introduce legislation in the on-going parliament session. This bill is expected to use the term ‘cryptoassets’ rather than ‘cryptocurrencies,’. It won’t refer to the central bank’s plan to create its own digital currency. The government is considering taxing gains from digital currencies. Apart from that there have been calls to impose stricter rules for transactions in virtual coins due to the unregulated nature of the business.