The Indian Government 🇮🇳 May Impose Penalty or Jail Term For Violating Crypto Norms

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The Indian Government 🇮🇳 May Impose Penalty or Jail Term For Violating Crypto Norms

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The Indian government is proposing legislation that would penalize a user for violating crypto policies, which could range from a maximum fine of $2.7 million or a jail term of 1.5 years. 

For the crypto investors, the government will likely give a deadline to comply with the new rules and declare their crypto assets.

Although there is a high degree of uncertainty of the regulatory situation in India, some reports have indicated that crypto investors will be forced to hold crypto in exchanges operating under the oversight of the Securities and Exchange Board of India (SEBI).

Under this proposed law, private wallets would not be legal, and any investors who use them could be subjected to the aforementioned judicial penalties. 

Additionally, the government also plans to introduce a minimum capital threshold for investing in cryptocurrencies.

It seems like the Indian government is taking this strict action against crypto due to the perceived rise in money laundering, fraud, and terrorism financing in recent years. 

Another aspect is that the competition from private cryptocurrencies may also threaten the Reserve Bank of India's plans to launch a digital rupee.

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