Instead of banning like before, it seems that the Indian government is considering officially recognizing cryptocurrencies as an asset class, preparing to launch the bill.
According to Bitcoin News, the Securities and Exchange Commission of India (SEBI) may be finalizing preparations to treat cryptocurrencies as an official asset class. In addition, a cryptocurrency bill is also likely to be introduced in the upcoming session of the country’s parliament, local media reports.
Until now, the Indian government has not introduced a cryptocurrency bill, although before that, there were doubts that this bill focused on banning the mining and trading of virtual currencies. However, there are many sources that believe that the government has been re-evaluating the recommendations in the bill, which could lead to major changes.
The New Indian Express reported on June 11 that “the government has moved away from its previous hostile stance towards cryptocurrencies and will most likely soon classify bitcoin as an asset class in India.”
The publication also added: “The Securities and Exchange Commission of India (SEBI) Market Regulatory Authority will oversee the regulation of the crypto sector after classifying bitcoin as a financial asset. property”.
Previously, multiple sources confirmed that the Indian government may set up an expert panel to come up with new recommendations, better monitor the crypto industry in India.
New Indian Express sources also revealed that the Indian Ministry of Finance actually has its own panel of experts focused on formulating national crypto-policy: “The crypto regulation bill could be will be introduced in the Monsoon session of Parliament.”
The Monsoon session usually starts in July every year. However, in 2020, the event was postponed to September due to the COVID-19 crisis. This year, India is expected to start the session according to the normal schedule.
Last week, the central bank of India (RBI), issued a notice to banks about the April 2018 circular banning financial institutions from providing services to businesses and investment traders, Mining and trading cryptocurrencies. The bank said the circular is no longer valid under a high court ruling in March 2020.
However, RBI Governor Shakthikanta Das of the central bank still reiterated that their stance on bitcoin and other cryptocurrencies has not changed and that it still has “major concerns,” adding that they have submit comments to the Indian Ministry of Finance.
Meanwhile, Ketan Surana, CFO of cryptocurrency exchange Coinsbit and a member of the Internet and Mobile Association of India (IAMAI), affirmed: “We can certainly say that The new committee that is working on cryptocurrencies is very optimistic about crypto regulation and legislation.”
He emphasized: “The cabinet will soon come up with a new draft proposal, which will review the overall scenario and make the most favorable changes and regulations. We very much hope that the government will accept cryptocurrency and blockchain technology.”
Although the cryptocurrency market in general and bitcoin in particular has been plunging in recent days with many continuous fluctuations, that has not completely affected people’s confidence in this asset class. Even El Salvador recently officially became the first country in the world to use Bitcoin as real money.
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