One of the world’s largest banks, the government-controlled State Bank of India, does not mind the heavy regulation of crypto in the country.
This is according to the bank’s chairman Rajnish Kumar. According to The Economic Times, Kumar has stated that regulation is necessary for cryptocurrencies to prevent their unlawful use:
“Let’s see. Because there’s a dark side of the internet also. There can be misuse of the digital currencies. That is why regulation is must.”
Bans, jail sentences, fines…
Currently, cryptocurrencies in India face severe restrictions. Financial institutions are, for instance, banned by the Reserve Bank of India from offering their services to crypto-related businesses and this includes cryptocurrency exchanges. Some cryptocurrency exchanges have had to shut down or move their operations overseas.
India’s government has also suggested that it is ready to adopt heavy-handed measures to rein in the sector. Reports emerged earlier this year that legislators in the world’s second-most populous country had proposed a bill that would slap a 10-year jail sentence for any individual found to own a cryptocurrency.
And besides the jail sentences, the bill also proposed heavy fines on crypto traders of up to three times any profits they might have generated.
‘We are on the right track with crypto’
Recently, India’s Finance Minister indicated that the country’s heavy-handed stance on cryptocurrencies was justified given the level of concern other nations have expressed over the technology:
“On our side, the Reserve Bank Governor spoke about it during our turn to intervene. I got the sense that many countries were cautioning on rushing into this.”