The Indian government is reportedly planning to introduce cryptocurrency regulation by the time of the next general Budget, which is in February next year. Instead of banning cryptocurrencies, like bitcoin, the government is more likely to regulate crypto assets as commodities, according to reports.
Indian Crypto Law Could Comes as Early as February
The Indian authorities is planning to introduce cryptocurrency regulation in February next year, local news outlet Business Today reported, elaborating:
Finance Ministry officers have advised Business Today Television that a law for cryptocurrencies would most probably come around by the point of the next basic Funds.
The Funds 2022-23 is predicted to be presented on Feb. 1 in the course of the first half of the parliament’s Budget session, which often begins in the last week of January.
Moreover, the government is more likely to regulate cryptocurrencies as an asset class, similar to how commodities are regulated, with acceptable taxation on transactions and gains, the news outlet conveyed. In June, the government reportedly said that the Securities and Exchange Board of India (SEBI) will oversee regulations for the cryptocurrency sector after crypto is classified as an asset class.
Another official told the publication that officials from the Finance Ministry and the Reserve Bank of India (RBI) are fine-tuning the regulatory framework for crypto. However, the central bank recently said it nonetheless has “serious concerns” about cryptocurrency.
India doesn’t at present regulate the crypto sector directly. The government has been contemplating a bill titled “Banning of Cryptocurrency & Regulation of Official Digital Currency” that seeks to ban all cryptocurrencies, like bitcoin, except state-issued ones. The bill was drafted by an inter-ministerial committee headed by former Finance Secretary Subhash Chandra Garg. It was published in July 2019.
However, latest stories suggest that the federal government may have moved away from the idea of banning cryptocurrencies. In July, the finance minister mentioned that the crypto bill was prepared for Cabinet. The chairman of India’s Parliamentary Standing Committee on Finance explained in September that cryptocurrency laws in India will be “distinct and unique.”
The CEO of cryptocurrency exchange Wazirx, Nischal Shetty, commented on the upcoming Indian crypto regulation:
Great to listen to that India plans to bring in crypto regulation bill next year. Crypto has reached a stage the place nations no longer talk about a ban. It’s now about ‘ regulate.’
Source: Bitcoin News