Bitcoin may finally be regulated as an asset class in India after three years of legal battles and countless committees
The India government may soon give a clear direction on Bitcoin with the possibility of classifying the cryptocurrency as an asset class.
India to reportedly ditch Bitcoin ban agenda in favor of asset classification
According to New India Express, the Securities and Exchange Board of India (SEBI) is reportedly planning to tackle the regulatory aspect of cryptocurrencies as Bitcoin is classified as an asset class.
Previously, the state has hinted at a hostile stance towards cryptocurrencies when alluding to the strict regulation of the industry.
The sources added that the finance ministry is holding regulatory talks with leaders in the crypto industry. As a result, the Indian parliament will have a crypto regulation bill that seeks to introduce new directions on the treatment of cryptocurrencies.
India is likely to join other jurisdictions such as El Salvador in defining this area. Recently, this South American country has officially considered Bitcoin as a currency.
Some crypto analysts note there is minimal possibility India will consider bitcoin as a legal tender.
Hitesh Malviya, blockchain and crypto investment expert, stated:
“In my opinion, the Indian government will explore a way to regularise bitcoin. I don’t think India will consider accepting bitcoin as a legal tender in the near future because it will affect the position of the Indian rupee. Accepting bitcoin as a legal tender is a good idea for those nations who don’t have their own currency or are dependent on the US dollar.”
The biggest hint that the government may change its stance on cryptocurrencies comes after the Reserve Bank of India (RBI) announced that banks could not use their 2018 order. The order banned banks from dealing with cryptocurrency transactions.
According to RBI, the 2018 circular has expired since the day the Supreme Court overturned the decision to ban banks from supporting cryptocurrency transactions.
Furthermore, some leading crypto exchanges are monitoring the Indian market to set up a base. United States-based Kraken, Hong Kong’s Bitfinex, and KuCoin are reportedly looking at the market. Analysts in the sector expect the Indian market to grow in the coming years.
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