The Union government is reportedly planning to bring rename cryptocurrency and place it under the regulatory ambit of Sebi instead of imposing a ban, according to a Mint report.
"Under the proposed law, cryptocurrency will be renamed crypto-asset and brought under the ambit of the Securities and Exchange Board of India (Sebi)," the publication reported on 3 December quoting sources.
Read | What happens when RBI issues a digital currency?
According to the report, by renaming cryptocurrency, the Centre aims to avoid an overlap between crypto-asset and the proposed digital currency by the Reserve Bank of India (RBI).
"All crypto exchanges will come under Sebi's regulatory ambit. Any violation could lead to monetary penalties ranging from Rs 5-20 crore and imprisonment," sources told the publication.
The Centre will also announce a cut-off for the existing cryptocurrency exchanges to get registered with Sebi.
Moneycontrol could not independently verify the report.
Explained: All that we know about the upcoming Cryptocurrency Bill 2021
Finance Minister Nirmala Sitharaman had earlier said that the government would introduce the new Crypto Bill in Parliament after Cabinet approval.
While the earlier bill's name suggested a blanket ban on crypto --The ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’, the current bill is named ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’.
Also read | Cryptocurrency Bill: Industry finds a silver lining after finance minister's response
Replying to a series of questions in the Rajya Sabha, she said the new Bill takes into account the rapidly changing dimensions in virtual currency space, and incorporate features of the earlier Bill that could not be taken up.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, has been included in the Lok Sabha Bulletin-Part II for the introduction in the ongoing winter session.
The Bill seeks to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI), the Bulletin said.
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