The Indian government has softened its attitude towards bitcoin and intends to develop regulation under which cryptocurrencies will be considered an alternative asset class.
According to local media reports, Indian authorities have revised their position on cryptocurrencies, abandoning their complete ban. In July, parliament will discuss a cryptocurrency regulation bill that would treat digital currencies as an alternative asset class.
A group of experts set up by the Indian Ministry of Finance has already begun drafting regulations to regulate the cryptocurrency industry, which will also be brought up for parliamentary debate next month.
The regulation of cryptoassets in the country will be handled by the Securities and Exchange Board of India (SEBI) in conjunction with the Ministry of Finance. Ketan Surana, member of the Internet and Mobile Communications Association of India (IAMAI), called this a positive signal for the development of the industry in the country.
“We can confidently say that the new committee is optimistic about cryptocurrencies. This will be reflected in the legislation accordingly and will soften the regulation of the industry, ”Surana said.
The Reserve Bank of India (RBI) recently said it still has serious doubts about cryptocurrencies. However, the Central Bank said last week that it is not prohibiting commercial banks from serving cryptocurrency firms. The RBI has urged banks not to invoke the 2018 cryptocurrency ban, which was overturned in March 2020 by the Indian Supreme Court.
With the country’s climate becoming more crypto-friendly, the marketplaces Kraken, Bitfinex and KuCoin recently announced plans to enter the Indian market.
Many cryptocurrency exchanges and firms have opposed the digital currency ban in India, including the Indian billionaire Nandan Nilekani. He is convinced that cryptocurrencies should be considered a new asset class, as huge capital is being poured into them.
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