Mumbai / New Delhi: India plans to tighten the Cryptocurrency regulation to prevent investors from holding them even though the government is not possible to follow up with a previous plan to ban private digital coins, according to two sources familiar with discussion.
Conversely, it can allow only those who have been approved earlier by the government to be registered and traded on exchanges – process deliberately complicated, the sources said, who asked not to be named a personal discussion.
“Only when coins have been approved by the government can be traded, others hold or trade it can withdraw penalties,” said the first source.
The government aims to introduce and forward the law of cryptocurrency in a parliamentary session that starts this month.
Such pre-verification approach will create obstacles to thousands of peer-to-peer currencies that are growing rapidly being outside the ambition of regulatory supervision.
On Thursday, Prime Minister Narendra Modi said all democratic countries must work together to ensure Cryptocurrency “does not end with the wrong hand, which can damage our youth” – his first public comment about this problem.
Earlier this year, the government considers criminalizing ownership, publishing, mining, trade, and transfer of crypto assets.
His attitude has changed since then – but only a few, according to two sources, who said the increase in large capital and other taxes could be charged to prevent Cryptocurrency trade.
Senior government sources say investors “must pay more than 40% in each Crypto gain so far”, adding that additional tax and service tax sales, and securities transaction tax, can be charged on capital tax.
The Ministry of Finance did not respond to comments that were looking for emails.
Last week, Modi led a meeting to discuss the future of Cryptocurrency, amid fears that the non-regulated crypto market could be a way for money laundering and terror financing, the sources were said separately on Saturday.
New rules also tend to prevent the marketing and advertising of Cryptocurrency, to blunt their attraction for retail investors, the word industry said which is part of a separate parliamentary panel discussion on Monday.
The government is looking to classify Crypto as a class of assets, as requested by the exchange of Crypto, not as a currency, said two sources.
But senior government officials told Reuters that the plan was to ban crypto private assets in the end while opening the way for the new central bank’s digital currency (CBDC).
The Reserve Bank of India, which has voiced the “serious concern” about Crypto Private, set to launch its CBDC in December.
Bitcoin, the largest cryptocurrency in the world, floated at around $ 60,000 and has more than doubled since the beginning of this year, drawing a horde of local investors.
There is no official data available but industrial estimates show 15-20 million Crypto investors in India, with total Crypto ownership of around 400 billion rupees ($ 5.39 billion).
China State Planner and Foreign Exchange Regulators, National Development and Reform Commission (NDRC), this week said they would continue to clean up the mining of virtual currencies in this country, which hit the price of Crypto’s currency.