The government has decided to reward ₹20 Crore fine Or Jail Term for Crypto Rules Violators as a punishment. So let’s find out all about this.
The union government of India is all set to make robust guidelines and frameworks for Cryptocurrencies in India. The Securities and Exchange Board of India will enforce these guidelines and violators will get a vigorous punishment.
The punishments will be in the proposal, however, as per reports, the punishments are ₹20 crores (≈$2.7 million) in fines, 1.5 years of vigorous imprisonment or both. For the welfare of small Investors, the government is likely to set a minimum threshold limit.
Earlier, the honourable Finance Minister of India revealed the ministry’s plan of entirely banning private Cryptocurrencies. However, with a bit of criticism and backlash, the government gave this a second thought. After this, the bill on Cryptocurrency was reworked and the government was willing to regulate Cryptocurrencies instead of banning them entirely.
However, with the acceptance of Cryptocurrencies, the government is still stern about not allowing Cryptocurrencies as legal tender. Unfortunately, this is kind of a bummer for people who wanted to eliminate middlemen to directly pay using Cryptocurrencies. The government is not willing to allow Cryptocurrencies to trade for good. The authorities will instead recognise Cryptocurrencies as assets.
The government has abandoned the idea of banning something that might make a lot of money. With the introduction of Cryptocurrencies in Tax laws of India, which will refer to Cryptocurrencies as ‘Crypto-Assets’. These Crypto-Assets will be under taxation similar to capital gains tax. Capital gains tax works in a way where the authorities tax the profit that a trader makes on selling a property in profits.
Concerns by PM Modi
The honourable Prime Minister of India, Narendra Modi has expressed his concerns about the unregulated Crypto market and how it facilitates illegal activities such as Money Laundering, Tax Evasion and Terror Funding. These regulations will hopefully keep these concerns in check.
The authorities have set a ₹20 Crore fine Or Jail Term for Crypto Rules Violators. This will force violators to abide by the rules set by the government. The vision of the government to regulate and moderate Cryptocurrencies is coming together and soon we might see these regulations in action. Hopefully, you liked this article. If you want to read more articles like this, do visit our website for more.