A Cabinet note circulated by the Indian government about the cryptocurrency bill says that the asset class would not be banned but regulated.
The note adds that crypto assets would not be made legal tender but acknowledge cryptocurrencies as crypto assets.
Securities and Exchange Board of India would list all crypto assets, and a date would be set for crypto holders to declare their position and bring the same to the exchange.
India’s proposed digital assets bill has excluded the Reserve Bank of India’s virtual currency in its provisions but says that the Central Bank would oversee issues around crypto.
Violation of the exchange rules would attract criminal imprisonment of up to 18 months, and fines between 5 to 20 crores may be imposed. The Indian regulator has also evoked the provisions of the Prevention of Money Laundering Act to stem out illegal vices.