The Government of India intends to ban the use of cryptocurrencies to pay for goods and services, but allow the trade of digital assets.
According to the Economic Times, the Indian government plans to introduce a cryptocurrency regulation bill this winter. As part of finalizing the bill, the Treasury Department initiated a series of closed meetings with the Reserve Bank of India (RBI). On Monday, negotiations were held with representatives of the cryptocurrency industry.
The Government of India has introduced a proposal to the bill banning the use of cryptocurrencies as a means of payment in the country. At the same time, trading in digital assets will be legalized. The Securities and Exchange Board of India (SEBI) may be appointed as the regulator, but the final decision on this matter has not been announced.
“Regulating cryptocurrency as an asset does not solve all of the issues that bother the government, but it is taking it out of the currency arena,” said Tanvi Ratna, founder and CEO of Policy 4.0 think tank.
The bill will also include a ban on “active incitement” to investments by cryptocurrency companies, including exchanges. According to Ratna, the issue of advertising has generated “a lot of discussion” – some believe that such advertising is misleading young people.
Earlier it was reported that a law on cryptocurrencies in India could be passed in February 2022. According to a statement from the Indian Ministry of Finance, the new rules will allow the authorities to curb illegal activities using cryptocurrencies.