New Delhi: At a time when the Central government is considering a new legislation to oversee cryptocurrencies, media reports on Tuesday claimed that PM Modi’s government will probably give crypto holders a deadline to declare their assets and meet any new rules. The report stated that any violators of the new cryptocurrency guidelines could be fined as much as RS 20 crore ($2.7 million) or imprisoned for 1.5 years, according to the proposals.Also Read - Polls on Mind: After Uttarakhand's Cap And Manipuri Stole, PM Dons Turban At NCC Rally

As per a report by Bloomberg, the Centre may also consider prescribing a minimum threshold for investing in crypto assets to safeguard small investors. Also Read - Kevin Pietersen Thanks India Prime Minister Narendra Modi For Republic Day Greetings

The development comes as India is planning to appoint its capital markets regulator to oversee cryptocurrencies. The new cryptocurrency bill is likely to use the term ‘cryptoassets’ rather than ‘cryptocurrencies,’ and won’t refer to the central bank’s plan to create its own digital currency, the report said. Also Read - Looking Forward To Creating World-Class Airline: Tata Sons Chief Chandrasekaran After Taking Over Air India

Last week, Finance Minister Nirmala Sitharaman said The Centre has reworked an earlier bill — which had proposed banning all private cryptocurrencies — to factor in new developments. However, she said that there was no proposal to recognize Bitcoin as a currency in the country.

It must be noted that the crypto market in India has grown 641% in the year through June 2021, according to an October report from Chainalysis, a crypto-analysis firm.

Last week, FM Sitharaman called for a “collective global action” for effective regulation of ever-changing technology and tech-driven payment systems. Her comments also come against the backdrop of the government preparing to come out with legislation to regulate cryptocurrencies.

Speaking at the InFinity Forum 2021, she said technology respects no physical borders and has the power to sweep through borders. “… It means that global action is the only way with which you can regulate effectively.”

India is working on a new Bill on cryptocurrency which will take into account the rapidly changing dimensions in virtual currency space and will be brought in Parliament during the ongoing session, which will end on December 23.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, seeks to “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”.