Bloomberg reveals details of India’s cryptocurrency regulation

Indian authorities are weighing giving the financial regulator powers to oversee cryptocurrencies, Bloomberg reports, citing informed sources.

According to them, the bill will use the term “crypto assets” rather than “cryptocurrencies”. It is reportedly not related to the Reserve Bank’s plan to create a CBDC.

The government, as agency sources suggested, would grant cryptocurrency holders a grace period to declare their assets. Offenders face fines of up to 200 million rupees ($2.6 million at current rates) or imprisonment of up to 18 months.

Bloomberg also asserts that authorities are considering setting a minimum threshold for investments in digital assets to shield small investors.

Earlier reports said that Indian citizens will be required to disclose information about the cryptocurrencies they own and transfer them to regulated SEBI bitcoin exchanges. Non-custodial wallets may be banned.

That information about ban of “the majority of private cryptocurrencies”, which spurred a short-lived panic on local platforms, did not prove true.

In November, the Reserve Bank of India said it had “serious concerns” about cryptocurrencies.

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