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Crypto Not Recognised As Legal Currency, To Be Regulated In India: 5 Points
02 Dec 2021, 07:10 PM IST 
RBI will regulate issues related to cryptocurrency
- The note suggests that Cryptocurrency is not recognised as legal currency in the country. The legislation also describes Cryptocurrency as Cryptoasset, according to the Cabinet note.
- Cryptoassets will be dealt with the existing crypto exchange platforms which will be regulated by the Securities and Exchange Board of India (SEBI). A cut-off date will be prescribed for those having cryptoassets to declare and bring under the crypto exchange platforms - which will be regulated by the market regulator.
- Reserve Bank of India's proposed virtual currency has not been clubbed with the new crypto legislation. However, the central bank will regulate issues related to cryptocurrency.
- All those found violating the exchange provisions will be penalised with a criminal imprisonment of upto one and a half years. Penalties in the range of Rs 5 crore to Rs 20 crore may also be levied by the regulator.
- As a deterrent for those found using the assets for terror related activities, the provisions of the Prevention of Money Laundering Act (PMLA) will be applied with suitable amendments.
