From Giving Power To SEBI And RBI To KYC Data Scrutiny: Latest Developments On Crypto Bill
With just close to two weeks to go for the winter session of Parliament to end on 23 December 2021, the curiosity surrounding the tabling and passing of Crypto bill is increasing day by day. Read on to know about the latest developments.
Ever since the news of the new Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 being tabled in the ongoing winter session of Parliament broke out, everyone has been keenly looking forward to what the bill holds for the investors. And with just close to two weeks to go for the winter session to end on 23 December 2021, the curiosity surrounding this bill is increasing day by day.
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As per the latest insights and information provided by those aware of the development, the new Cryptocurrency bill is set to empower regulators and government agencies, including SEBI, RBI and the tax department to scrutinize the KYC data of investors which crypto exchanges have collected from clients. It is expected that the new regulations would mandate cryptocurrency exchanges to share their KYC data, which mainly includes details of their investors, with the government.
What this KYC data scrutiny would do is help regulators zero in on transactions across platforms, check that against corresponding bank deposits and even calculate or scrutinize gains and other discrepancies. The bill¡¯s new framework would put forth a uniform KYC process that every crypto exchange must adhere to, instead of the existing different KYC processes of different exchanges. Hence, with this move, KYC data will become the key for any scrutiny by any regulator.
Under the expected framework of the new cryptocurrency bill, the government could ask SEBI to regulate cryptocurrencies in India. It is also expected that the new regulations might treat cryptocurrencies as an asset/commodity for all purposes, including taxation.
And with the Union Budget 2022 barely two months away, it's expected that the government may be looking to add crypto to the Income Tax Act, which would result in mandatory disclosures by taxpayers of their crypto investments in India as well as abroad.
However, all this remains to be seen. Currently, all eyes are on the tabling and passing of the proposed Crypto Bill 2021.
Also Read: How To Evaluate Crypto And Return On Investment For Investors
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