India may regulate crypto as an asset class under the purview of the Securities and Exchange Board of India (SEBI). In addition, a crypto bill is likely to be tabled during the monsoons session of parliament, local media reported.
The Indian government is reportedly considering regulating crypto as an asset class
The Indian government has yet to put in place a cryptocurrency law. An existing law is supposed to ban crypto currencies. However, there have been reports that the government is re-evaluating the recommendations of the bill.
The New Indian Express reported Friday that top sources tracking the crypto industry told it that “the government has moved away from its previous hostile stance towards virtual currencies and that Bitcoin will most likely soon be classified as an asset class in India.” The publication further conveyed:
The Securities and Exchange Board of India (SEBI) will oversee regulations governing the cryptocurrency sector after classifying Bitcoin as an asset class.
The media previously reported that the Indian government will set up a panel of experts to come up with new recommendations on how to monitor the cryptocurrency industry in India. Sources told the publication that an expert panel from the Treasury Department is working on formulating the country’s cryptocurrency policy. The publication further conveyed:
A bill to regulate cryptocurrencies is likely to be tabled in parliament during the monsoons session.
The monsoon session usually starts in July. However, last year it didn’t start until September due to the coronavirus crisis. This year the government expects the meeting to begin on its normal schedule.
Last week, India’s central bank, the Reserve Bank of India (RBI), issued a notice to banks regarding their April 2018 circular banning financial institutions from providing services to crypto companies and traders. The bank said the circular was no longer valid, according to the Supreme Court ruling of last March, stressing that banks cannot quote it when making decisions about cryptocurrencies.
However, the central bank reiterated that its stance on Bitcoin and other cryptocurrencies has not changed and it still has “major concerns,” said RBI Governor Shakthikanta Das, adding that they have been notified to the Treasury Department.
Ketan Surana, director and chief financial officer of Coinsbit cryptocurrency exchange and member of the Internet and Mobile Association of India (IAMAI), said: “We can definitely say that the new committee dealing with cryptocurrencies is very optimistic about regulation and legislation of cryptocurrencies is. ”The director emphasized:
The cabinet will soon have a new draft proposal that will examine the overall scenario and take the best step forward. We are very confident that the government will adopt cryptocurrencies and blockchain technologies.
Do you think India should regulate crypto as an asset class? Let us know in the comment section below.
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