India will not ban crypto but will regulate private cryptocurrencies, reports NDTV India. The government says any cryptocurrency that is not issued by the authorities falls under the category of private cryptocurrencies. According to the report, a cabinet note in circulation suggested that the government is planning to regulate private crypto and not ban it. This is a big relief for Indian investors as there has been visible fear in the market for the past week.
Report from NDTV India
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NDTV's Sunil Prabhu reports pic.twitter.com/8Ggm5YtFAw
— NDTV (@ndtv) December 2, 2021
The official Twitter page of the news channel also tweeted that the Indian crypto ban is not happening. They didn’t cite their sources, but considering the sheer size of the channel, we can trust it with a pinch of salt. NDTV also said that crypto assets would not be considered legal tender in the country. This was something we all knew because of the statements from several authorities. In fact, we do not need it because our existing payment infrastructure is good enough to handle everything. What we needed was the authorities to recognize crypto as an asset which seems to be happening.
Also, note that since the cryptocurrencies will be termed as an asset, they will be regulated by SEBI (Securities and Exchanges Board of India). This means we will get a lot of transparency on laws, and crypto exchanges will be looked over by SEBI. It will ensure investor protection and make exchanges even more inclined towards making their platform better.
Regulation will also finally solve the problem of banks not working properly with exchanges. This will make the entire scenario of deposits and withdrawal better. In fact, the charges on deposits on many exchanges could also go away.
The government will be very strict on imposing regulations on exchanges in the country. Reports suggest that anyone not following the same might have to pay between Rs 5- Rs 20 crores in fine. At the same time, they can face up to 1.5 years in prison. The authorities also reported that the money laundering laws would apply to anyone found using crypto for terrorism or illegal activities.
What are your thoughts on NDTV’s report that India will not ban crypto? And do you think this was as obvious as it comes? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.