The cryptocurrency landscape in India is nearing a decisive conclusion regarding policies and laws. According to reports from Bloomberg India, the government has set the maximum penalty for breaking crypto laws. As per the report, the penalty could be a maximum of $2.7 million or imprisonment of up to 5 years, or both. At the surface of it, the amount of penalty is quite big considering other penalties in the country. However, the authorities hope that strict punishments will deter investors from breaching crypto regulations.
Bloomberg also added that all Indian cryptocurrency exchanges will have to operate within the laws of SEBI, the securities and exchange commission of India. There are two main reasons behind India taking a tough stance in crypto regulations. Firstly, external interference from private companies will sidetrack the Reserve Bank of India’s plan of launching the digital rupee. On the other hand, crimes related to cryptocurrency are at an all-time high in India as well as the rest of the world. India hopes to control crime rates by keeping the sector under regulation.
Over the past few weeks, the drama of an upcoming crypto bill has been unfolding in India. After many rounds of misinformation and confusion, it is now becoming increasingly clear that India is unlikely to ban cryptocurrencies. However, it will take a tough stance in regulating and supervising the sector. If things go as expected, India will have a clear legal framework by the beginning of 2022.