India sets the maximum penalty for violating crypto norms with a fine of $ 2.7 million or 1.5 years in prison



India sets the maximum penalty for violating crypto norms with a fine of $ 2.7 million or 1.5 years in prison

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

This would mean that private wallets would not be legal under the proposed law and investors who use them could face the above judicial penalties. In addition, Modi’s government plans to introduce a minimum capital threshold for investments in cryptocurrencies.

India is taking a tough stance on crypto in part due to the perceived surge in fraud, money laundering and terrorist financing in the sector in recent years. Another element, however, is that competition from private or privately issued cryptocurrencies would theoretically jeopardize the Reserve Bank of India’s plans to introduce a digital rupee. The official text of an ongoing controversial crypto law in the country reads as follows:

“To provide a facilitating framework for the creation of the official digital currency issued by the Reserve Bank of India. The bill also aims to ban all private cryptocurrencies in India; however, it allows certain exceptions to promote the underlying technology of the cryptocurrency and its use. “