Indian government reportedly considering regulating crypto as an asset class
The Indian government has yet to introduce a cryptocurrency bill. An existing bill seeks to ban cryptocurrencies. However, there have been reports that the government is reassessing the recommendations contained in the bill.
The New Indian Express reported on Friday that key crypto industry monitoring sources told it that “the government has moved away from its previous hostile stance towards virtual currencies and will most likely soon classify bitcoin as a class. assets in India ”. The publication further transmitted:
The market regulator Securities and Exchange Board of India (SEBI) will oversee the regulation of the cryptocurrency industry after the classification of bitcoin as an asset class.
Media previously reported that the Indian government would set up an expert group to make further recommendations to oversee the cryptocurrency industry in India. Sources informed the publication that a group of finance ministry experts were working on formulating the country’s cryptocurrency policy. The publication further transmitted:
A bill to regulate cryptocurrency is expected to be tabled in Parliament during the monsoon session.
The monsoon session usually begins in July. However, last year it only started in September due to the coronavirus crisis. This year, the government expects the session to begin on its regular schedule.
Last week India’s central bank, Reserve Bank of India (RBI), issued a notice to banks regarding its April 2018 circular banning financial institutions from providing services to crypto businesses and traders. The bank said the circular was no longer valid according to the Supreme Court ruling in March last year, stressing that banks cannot quote it when making decisions on cryptocurrency.
The central bank, however, reiterated that its stance on bitcoin and other cryptocurrencies had not changed and that it still had “major concerns,” RBI Governor Shakthikanta Das said, adding that they had been communicated to the Ministry of Finance.
Ketan Surana, Director and CFO of the Coinsbit cryptocurrency exchange and a member of the Internet and Mobile Association of India (IAMAI), said, “We can certainly say that the new committee that is working on cryptocurrencies is very bullish on cryptocurrency regulation and legislation. The director pointed out:
A new draft proposal will soon be in Cabinet, which will examine the overall scenario and take the best step forward. We very much hope that the government will embrace cryptocurrencies and blockchain technologies.
Do you think India should regulate crypto as an asset class? Let us know in the comments section below.
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