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#Cryptocurrency under MPID Act 1999
Started from 1st July 2026 now...!!
Crypto & Digital Virtual Assets protection started under the MPID Act from July 1, 2026, when the Maharashtra state legislature passed amendments to the Maharashtra Protection of Interest of Depositors in Financial Establishments ( #MPID) Act, 1999.
This amendment made Maharashtra the first Indian state to bring Virtual Digital Assets ( #VDAs) under a state-level financial fraud recovery framework.
Here are the critical details of this development:
1- Asset Classification:
Cryptocurrencies, NFTs, and other digital assets are now classified as "deposits" and recoverable properties.
2- Recovery & Compensation:
Authorities can legally trace, attach, liquidate, and value these digital assets to compensate victims of crypto-linked investment scams.
3- Targeted Enforcement:
It empowers investigators to seize digital holdings rather than just freezing wallets, plugging a significant loophole used by fraudsters.
4- No Legal Tender Status:
This amendment does not make cryptocurrency legal tender in India or introduce a comprehensive national licensing framework. It serves strictly as an investor protection and fraud-recovery mechanism